Extension of offshore time limits
The assessment time limits have been increased for offshore income and gains to 12 years. Similarly the time limits for proceedings for the recovery of inheritance tax are increased to 12 years where the lost tax involves an 'offshore matter'. Where an assessment involves a loss of tax brought about deliberately the assessment time limit is 20 years after the end of the year of assessment and this time limit will not change.
The legislation does not apply to corporation tax or where HMRC has received information from another tax authority under automatic exchange of information.
The potential extension of time limits apply from the 2013/14 tax year where the loss of tax is brought about by careless behaviour and from the 2015/16 tax year in other cases.
Review of other time limits
A report will be issued in March comparing the time limits for the recovery of lost tax involving an offshore matter with other time limits.
Insurance Premium Tax
A call for evidence will be issued on where improvements can be made to ensure that Insurance Premium Tax operates fairly and efficiently.
A discussion paper has been issued launching a review of the Aggregates Levy including the Terms of Reference and information on timing and scope of the review.
Tackling tax avoidance, evasion and other forms of non-compliance
A policy paper has been issued which:
- outlines HMRC's strategy and approach to compliance for different taxpayer types
- details the government's record in addressing areas where risks of non-compliance have been identified
- provides a summary of the government's investment in HMRC and its commitment to further action.
Late payments made to small businesses
In his speech, the Chancellor announced that further action will be taken to tackle the issue of late payments by large businesses to small businesses. A full response to a call for evidence issued in 2018 will be published shortly. As a first step the government will require Audit Committees to review payment practices and report on them in their Annual Accounts.