More anti-avoidance legislation is expected.

HMRC has indicated that it is considering legislating against some of the schemes highlighted in its "Spotlight on avoidance schemes" publications. In addition, the Telegraph has reported that Dave Hartnett, the permanent secretary at HMRC, has been conducting a review of the tax system with a view to closing loopholes.

(See also below:

Anti-avoidance measures aimed at preventing taxpayers avoiding the new 50% tax rate are expected.

A response and next steps document on:

Both consultations closed 30 October 2009.

Confirmation of whether the proposed simplification of the tax treatment of employment-related securities acquired for less than market value under Chapter 3C of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 is to be included in the Finance Bill 2010. (This measure was announced in the 2008 PBR but due to constraints on space, the draft legislation was not included in the Finance Bill 2009. HMRC has, however, indicated that it will be taking this measure forward with a view to inclusion in the Finance Bill 2010.)

A response document and next steps paper.

The consultation closed on 12 October 2009.

This new measure was announced with scant detail in the 2009 Budget. At the time, the government promised to provide details of the new charge at the 2009 PBR.

Benefits in kind and expense payments: inclusion in the payroll

Legal update, Responses to consultation on benefits in kind and expense payments in the payroll

While the majority of the respondents to the consultation were against the idea of payrolling benefits and expenses, HMRC has nevertheless embarked on further consultation with particular respondents and has also set up a number of trials.

A progress report may therefore feature in the 2009 PBR.

At the 2009 Budget, the government announced that it would consult with the charitable sector about the substantial donors anti-avoidance rules before amending the existing legislation. An announcement is expected in the 2009 PBR, with amended legislation to follow in the Finance Bill 2010.

Confirmation that tax relief will not be withdrawn but that tax relief for higher earners will be restricted to the basic rate of tax.

As part of PBR 2007, the government launched a simplification review on corporation tax for related companies. The review identified a number of areas where simplification could have a significant impact for UK companies including:

The Finance Act 2008 enacted a partial simplification of the associated company rules for the small companies' corporation tax rate. A consultation on further simplification measures has also been published (as to which, see Legal update, Consultation on ignoring rights of associates for small companies' rate of corporation tax). The consultation closes on 22 January 2010 and, accordingly, nothing substantive is expected in respect of this simplification measure in the 2009 PBR.

The consultation on the discussion document on the group aspects of the chargeable gains regime closed on 30 September 2009. Accordingly, a progress report and possibly the full consultation document is anticipated at 2009 PBR on the group aspects of the chargeable gains regime.

An announcement on the progress made towards simplifying the other two issues is also likely.

In the 2008 Budget, the government launched a wide-ranging consultation aimed at simplifying the EIS and reducing the administrative and regulatory burden which it imposes. The government published a response document as part of the 2008 PBR. In addition to highlighting the areas where further consultation or review is required, the document confirmed that legislation would be brought forward in the Finance Act 2009 and Finance Act 2010 in respect of a number of key changes.

Further, a number of changes to the EIS, corporate venture scheme and venture capital scheme rules are required to comply with state aid rules. The government has indicated that it will consult on the details of the changes.

An announcement on these changes is expected.

Details of the new Bill.

Nothing is expected in the 2009 PBR although the government plans to publish a discussion paper by the end of 2009 and draft legislation in the second half of 2010 (with a view to including the legislation in the Finance Bill 2011).

An announcement and, possibly, draft legislation on the repeal of the furnished holiday lettings rules, which is intended to take effect from 2010-11.

Stephen Timms, Financial Secretary to the Treasury, has confirmed that research into the proposal should be completed by the Autumn. An announcement is, therefore, expected in the 2009 PBR.

(See also,

Draft legislation implementing the changes.

Legal update, 2009 Budget: Key tax announcements, working with tax agents

A response document and next steps paper is expected as part of the 2009 PBR on:

The consultations closed on 1 October 2009 and 7 August 2009 respectively.

The proposal for income shifting legislation, which was due to be introduced in the Finance Bill 2009, was shelved in the 2008 PBR because of the prevailing economic climate. While that climate has not changed, the proposal may be re-ignited by fears that taxpayers will use income shifting to avoid the new 50% tax rate.

Intellectual property: taxation review

In the 2009 Budget, the government announced that it would carry out a review of the taxation of innovative activity in the UK, including intellectual property and publish its proposed approach before the 2009 PBR. That report has yet to be published. It is therefore likely that the report will be published (or an announcement about its publication will be made) at PBR.

Following the High Court's decision in the Prudential case, there have been calls for the government to establish a consultative body to review LPP as it affects tax advice.

An announcement is possible.

Progress towards a statutory test of residence.

Confirmation of previously announced rates including VAT rates for those using the flat rate scheme.

Stephen Timms, Financial Secretary to the Treasury has announced that the 2009 PBR will set out a programme of work to strengthen the disclosure regime, which will include making disclosure requirements broader, increasing the penalties for the non-compliant and giving HMRC more information on who are using the schemes.

The draft legislation implementing the changes to the Finance Act 2009 worldwide debt cap provisions, which were announced on 9 November 2009.