The personal allowance will rise from its previously announced level of £10,600 (for those born after 5 April 1938) or £10,660 (for those born before 6 April 1938) for 2015-16, to £10,800 for 2016-17, and £11,000 for 2017-18. The rates for 2016-17 and 2017-18 will apply to all taxpayers, regardless of their date of birth. At the same time, the basic rate limit will be increased from £31,875 to £31,900 for 2016-17, and £32,300 for 2017-18.

The higher rate threshold will be £42,385 (2015-16), £42,700 (2016-17) and £43,300 (2017-18). The basic, higher and additional rates of income tax will not change for 2015-16. The NICs upper earnings and upper profits limits will increase in line with the higher rate threshold.

As announced in the 2014 Autumn Statement, the blind person's allowance, the married couple's allowance and the income limit will increase by amounts equivalent to the retail prices index.

For details of previous income tax rates and allowances, see Practice note, Tax rates and limits: Income tax.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

For more information, see Private client tax legislation tracker 2014-15: Lifetime planning: Income tax: personal allowances and higher rate threshold for 2015-16.

(See TIIN, Income tax: personal allowance and basic rate limit for 2016-17 and 2017-18, HM Treasury: March Budget 2015, paragraphs 1.207, 1.212, 2.66, 2.67 and 2.70, Overview, page 7 and 11 and HM Government: March Budget 2015: policy costings, page 7.)

The government will introduce a personal savings allowance (PSA) from 6 April 2016. For basic rate taxpayers, the first £1,000 of savings income will be free of tax and for higher rate taxpayers, the first £500. There will be no allowance for additional rate taxpayers. The PSA will be in addition to ISA allowances.

The government will discuss implementation issues with the savings and investment industry and other interested groups. Financial institutions will stop deducting 20% in income tax from interest on non-ISA savings from April 2016. HMRC will introduce automated coding out of savings income that remains taxable through the PAYE system from 2017-18, with pilots starting in autumn 2015.

For more information about income tax rates and allowances, see Practice note, Tax data: income tax: Individuals: rates and allowances.

This measure will not be included in the pre-election Finance Bill due to be published on 24 March 2015. Depending on the outcome of the general election on 7 May, it may be included in a future Finance Bill.

(See HM Treasury: Abolishing tax on savings for 95% of savers, HM Treasury: March Budget 2015, paragraphs 1.222, 1.224 and 2.84, Overview, paragraph 2.1 and HM Government: March Budget 2015: policy costings, page 10.)

The amount of the personal allowance transferable under the new marriage transferable tax allowance will increase to £1,060 in 2015-16.

From 2016-17 the allowance will be 10% of the personal allowance, and so will rise to £1,080 in 2016-17 and £1,100 in 2017-18 as a result of the increases in the personal allowance announced in the Budget (see Income tax: personal allowance and basic rate and higher rate limits for 2016-17 and 2017-18).

For more information on the allowance, see Private client tax legislation tracker 2014-15: Marriage transferable tax allowance 2015-16 to 2017-18 and Tax data: income tax.

(See Overview, Annex B and HM Treasury: Chancellor George Osborne's March Budget 2015 speech.)

The government will extend the period over which self-employed farmers can average their profits for income tax purposes to five years (from two years). For information on averaging profits, see Practice note, Income tax: calculation of income profits: Special rules for certain trades.

Later this year, the government will consult on the detailed design and implementation of the extension. The change will come into effect from 6 April 2016 and be included in a future (post-election) Finance Bill.

(See HM Treasury: March Budget 2015, paragraphs 1.118 and 2.68, Overview, paragraph 2.13 and HM Government: March Budget 2015: policy costings, page 16.)

The current tax treatment of payments from sporting testimonials will be preserved while representations are considered. This follows HMRC's technical note and call for evidence on the withdrawal of extra statutory concessions published on 2 November 2014. The technical note was published as a result of HMRC's review of all of its stated concessions following the decision of the House of Lords in R (on the application of Wilkinson) v Inland Revenue Commissioners [2005] UKHL 30 that the scope of HMRC's discretion to make concessions that depart from the strict statutory position is not as wide as previously thought. The relevant guidance on sporting testimonial payments contained in HMRC: Employment Income Manual: EIM64120 was due to be withdrawn on 6 April 2016 and updated guidance published beforehand, on the basis that HMRC thought it was being applied incorrectly and was out of line with current tax legislation.

Currently, payments from sporting testimonials are only taxable as employment income if they are received either as a contractual right or an expectation. If a testimonial is organised by an independent committee and there is no pre-existing entitlement or expectation, then usually the proceeds are not taxable. This announcement confirms that further consultation will take place and that no changes will be made to the current guidance before April 2016.

(See HM Treasury: March Budget 2015, paragraph 2.69 and Overview, paragraph 2.6.)

The government confirmed that legislation will be introduced providing that guaranteed fee income of investment managers arising on or after 6 April 2015 will be subject to income tax.

The measure was initially announced in the 2014 Autumn Statement and was included in draft legislation for inclusion in the Finance Bill 2015. Following consultation, the legislation will be amended to:

The measure aims to prevent managers converting trading income into capital receipts and is in response to private equity fund managers increasingly using structures in which annual fees are paid as priority partnership shares to avoid income tax. Sums received for investment management services provided to collective investment schemes through arrangements involving any number of partnerships will be caught unless they represent "carried interest" or constitute a return on capital invested by the individual. For more information, see Practice note, Carried interest: tax: Anti-avoidance: disguised management fees.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

For more information, see Private client tax legislation tracker 2014-15: Income tax: disguised fee income of investment managers.

(See HM Treasury: March Budget 2015, paragraph 2.214 and Overview, paragraph 1.4.)

As announced as part of the 2014 Autumn Statement, legislation is to be introduced to provide a new relief allowing individuals lending through peer-to-peer (P2P) platforms to offset any losses from loans that go bad against other P2P interest received. This measure is to be effective from April 2016 and, through self-assessment, is to allow individuals to claim relief for losses incurred from April 2015.

As part of the March 2015 Budget, the government stated that a technical note on this measure was to be published "shortly after" the Budget.

This measure will not be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March). Depending on the outcome of the general election on 7 May 2015, it may be included in a future Finance Bill, with draft legislation currently planned to be published in 2015.

For more information, see Private client tax legislation tracker 2014-15: Lifetime planning: Income tax: peer-to-peer lending.

(See HM Treasury: March Budget 2015, paragraph 2.89 and Overview, paragraph 2.7.)

The capital gains tax (CGT) and corporation tax exemption for gains on wasting assets will be restricted so that it is available only if the asset disposed of has been used in the business of the person disposing of it. The restriction will apply to gains accruing on or after 6 April 2015 for CGT and on or after 1 April 2015 for corporation tax.

Certain wasting assets are exempt from tax on chargeable gains, including any tangible movable property that does not qualify for capital allowances (section 45, Taxation of Chargeable Gains Act 1992 (TCGA 1992)). Plant and machinery are wasting assets (section 44(1)(c), TCGA 1992). The new restriction is designed to ensure that a business owner cannot obtain the exemption by lending an asset to be used as plant and machinery in another person's business.

The government states that this measure "clarifies" the law. However, HMRC lost on this point in HMRC v The Executors of Lord Howard of Henderskelfe (deceased) [2014] EWCA Civ 278 and has been refused permission to appeal to the Supreme Court. The Court of Appeal held that a painting owned by an individual's estate but used by a company operating a tourist attraction was plant, and so qualified for the wasting asset exemption, even though the owner was not the business operator. (See Legal update, Painting held to be wasting asset (Court of Appeal) and Private client case tracker: H.)

It is unclear from the Budget documents whether the restriction will apply only to plant and machinery, or also to other types of wasting asset.

For more information about wasting assets and the exemption from tax on gains, see Practice note, Tax on chargeable gains: general principles: Wasting assets: restriction on allowable deductions and Wasting assets: exemption.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

(See TIIN, Capital gains tax: exemption for certain wasting assets, HM Treasury: March Budget 2015, paragraph 2.103 and Overview, paragraph 1.40.)

With effect from 18 March 2015, individuals wishing to claim entrepreneurs' relief on the gain arising on the disposal of a personally owned asset that has been used in their business or personal company must, at the same time, make a significant disposal of their share in the business or shareholding in the company. Until now, any disposal out of a material holding was sufficient to trigger the entitlement to claim relief on disposal of the associated asset and thus pay CGT at a rate of 10%.

To prevent minor or short term reductions in partnership share or shareholding that might be undertaken simply in order to qualify for relief on the sale of a personal asset, section 169K of TCGA 1992 is to be amended to require a disposal of an interest representing at least 5% of the assets of a partnership or 5% of the ordinary shares or securities of a personal trading company, with the condition that there are no arrangements to reacquire an increased share in the partnership or additional shares in the company. The relief is intended to benefit individuals who are permanently withdrawing from a business.

For more information on entrepreneurs' relief, see Practice note, Entrepreneurs' relief.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

(See TIIN: Capital gains tax: restricting entrepreneurs’ relief on associated disposals, HM Treasury: March Budget 2015, paragraphs 1.252 and 2.98, Overview, paragraphs 1.38 and Annex A and HM Government: March Budget 2015: policy costings pages 33 and 34 and Annex B.7.)

The Chancellor has announced that, for the purposes of entrepreneurs' relief (ER), with effect from 18 March 2015, a company will not qualify as a trading company simply by virtue of its participation in a joint venture (JV) or partnership. ER operates to reduce to a rate of 10%, for the first £10 million of gains, the capital gains tax chargeable on the disposal of shares in a qualifying personal trading company of which the seller is an employee or officer.

Draft legislation released as part of the March 2015 Budget documentation amends the definition of "trading company" and "trading group". A company that does not carry on a trade of its own will no longer, for the purposes of ER be able to treat its share of the trade of a partnership or JV of which it is a member as constituting a trading activity. This change has been introduced to prevent the use of structures which contrive for individuals to be directors of a company in which they each own 5% of the shares and for that company, which has no trade of its own, to own 10% of the shares of the trading company. This was seen as an abuse of a relief that was intended to benefit the owners of a business.

For more information on entrepreneurs' relief, see Practice note, Entrepreneurs' relief.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

(See TIIN: Capital gains tax: entrepreneurs’ relief, joint ventures and partnerships, HM Treasury: March Budget 2015, paragraphs 1.252 and 2.96 and Overview, paragraph 1.39.)

The Chancellor confirmed that, as announced in the 2014 Autumn Statement, sole traders and partners who transfer their business to a related close company on or after 3 December 2014 will be not be entitled to claim ER on the value of the goodwill. However, as a result of the consultation on the draft legislation, the restriction will not apply to partners who dispose of their partnership share to a company but do not acquire shares in that company or in any associated company.

For more information on the incorporation of a business, see Practice note, Incorporating a partnership: tax issues.

This measure will be included in the first (pre-election) Finance Bill of 2015, due to be published on 24 March 2015.

For background to the measure, see Private client tax legislation tracker 2014-15: CGT: entrepreneurs' relief.

(See HM Treasury: March Budget 2015, paragraph 2.98 and Overview, paragraph 1.41.)

The Chancellor announced in the March 2015 Budget that the government will review the ER treatment of academics who dispose of shares in spin out companies that exploit intellectual property to which they have contributed.

To qualify for ER, an individual needs to hold at least 5% of the shares in a trading company and to be an employee or officer of that company in the 12 months ending on the date of sale. For academics, these requirements are difficult to meet both because of their academic commitments and because the funding required to develop the product is likely to mean that they are left with less than 5% of the shares in the spin out company.

This measure will not be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March). Depending on the outcome of the general election on 7 May 2015, it may be included in a later Finance Bill in 2015 or 2016.

(See HM Treasury: March Budget 2015, paragraphs 1.189 and 2.97 and Overview, paragraph 1.41.)

A measure to extend the capital gains tax (CGT) charge on disposals of residential properties that are subject to the annual tax on enveloped dwellings (ATED). With effect from 6 April 2015, the charge will apply to properties subject to ATED worth over £1 million and up to £2 million, and with effect from 6 April 2016, to properties subject to ATED worth over £500,000 and up to £1 million.

This measure was announced in Budget 2014. The extended CGT charge will only apply to post-5 April 2015 gains where the property is valued at over £1 million and up to £2 million and only to post-5 April 2016 gains where the property is valued at over £500,000 and up to £1 million (which will become liable to ATED for the first time from 1 April 2016). For more information on ATED-related CGT, see Practice note, Capital gains tax charge relating to annual tax on enveloped dwellings (ATED).

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

For more information, see Private client tax legislation tracker 2014-15: Lifetime planning: CGT: ATED-related charge extension in stages to dwellings over £500,000.

(See HM Treasury: March Budget 2015, paragraph 2.102 and Overview, page 13.)

Regulations will be introduced to:

In addition, the government will introduce a new Help to Buy ISA. The scheme will work by providing a government bonus to each person who has saved into a Help to Buy ISA at the point they use their savings to purchase their first home. For every £200 a first time buyer saves, the government will provide a £50 bonus up to a maximum of £3,000 (on £12,000 of savings). The government intends the scheme to be available from Autumn 2015.

These measures will not be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

(See HM Treasury: Help to Buy: ISA: scheme outline, Help to Buy: ISA - factsheet and HM Treasury: March Budget 2015, paragraphs 1.24, 1.225, 1.228, 2.80, 2.83 and 2.85, Overview, paragraphs 2.10 and 2.11 and HM Government: March Budget 2015: policy costings, pages 10-12, appendices B1, B7 and B8.)

The planned increase in the premium bond investment limit from £40,000 to £50,000 will have effect from 1 June 2015. The increase was announced in the 2014 Budget (see Legal update, 2014 Budget: key private client tax announcements: Premium bond limit to increase from 1 June 2014).

Premium bond prizes are exempt from income tax and capital gains tax, but the value of the bond itself is taken into account for inheritance tax.

Increases in premium bond limits are implemented by statutory instrument amending the Premium Savings Bonds Regulations 1972 (SI 1972/765).

(See HM Treasury: March Budget 2015, paragraph 2.90.)

Legislation is to be introduced to exclude companies that benefit "substantially" from any subsidy for the generation of renewable energy from qualifying for relief under the venture capital schemes unless the company is a qualifying community energy organisation. The restriction was announced in the 2014 Autumn Statement and draft Finance Bill clauses published on 10 December 2014. It is confirmed that, following consultation on the draft clauses, the legislation has been revised to ensure that the exclusion extends to equivalent foreign subsidies. For more detail on these changes, see Legal update, March 2015 Budget: key business tax announcements: Venture capital schemes changes.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

For more information, see Private client tax legislation tracker 2014-15: Lifetime planning: Venture capital schemes: restrictions and process.

(See HM Treasury: March Budget 2015, paragraphs 1.200, 1.201, 2.75, 2.76 and 2.77 and Notes on Finance Bill 2015 Resolutions, resolutions 21 and 22, Overview, paragraphs 1.7 and 1.8 and HM Government: March Budget 2015: policy costings, page 20.)

From 6 April 2016, the lifetime allowance will be reduced from £1.25 million to £1 million (although the annual allowance will remain unchanged). A further form of transitional protection from the lifetime allowance charge will be introduced in a future Finance Bill for those who have built up pension savings in the expectation the allowance would not be reduced. For a comparison between the various other forms of protection already in place, see Practice note, Protection from the lifetime allowance charge: a comparison.

From 6 April 2018, the lifetime allowance will be indexed, rising in line with the annual increase in the consumer prices index (CPI).

(HM Treasury: March Budget 2015, paragraph 1.232 and 2.86, Overview, paragraph 2.35, HM Government: March Budget 2015: policy costings, page 14 and Chancellor George Osborne's March Budget 2015 speech.)

Noting that the new pension flexibility regime coming into effect on 6 April 2015 will not be available for those with existing annuities, the government has announced that individuals who are already receiving income from an annuity will be able to take advantage of their own form of flexibility. They will be entitled to assign their annuity income stream to a third-party buyer in exchange for a lump sum or an alternative retirement product, provided the original annuity provider agrees to the transaction. These measures are intended to come into effect in April 2016. (For background about the pension flexibility reforms, see Practice note, DC pension flexibility: overview.)

A call for evidence published alongside the Budget outlines the government's plans for creating a secondary market in annuities. For a summary of the main points, see Legal update, March 2015 Budget: key pensions announcements.

The new rules on the tax treatment of death benefits will apply to funds received by annuity holders who have made an assignment. Broadly speaking, if an individual sets up a flexi-access drawdown fund using monies received from an assignment, any unused flexi-access drawdown fund left on his death can be passed to his beneficiaries free of tax if he dies before reaching the age of 75. Equally, any payments under a flexible annuity to a beneficiary will be free of tax if the original annuity holder dies before age 75. (For background about the planned changes to the tax treatment of death benefits, see Legal update, DC pension flexibility: overview: Changes to tax treatment of death benefits.)

(HM Treasury: March Budget 2015, paragraphs 1.230-1.231, 2.81-2.82, Overview, paragraph 2.8 and page 11, HM Government: policy costings, page 15 and annex B.7 and HM Treasury: Creating a secondary annuity market: call for evidence.)

The government intends to consider or take forward over 70% of recommendations included in the Office of Tax Simplification's (OTS) final report on partnership taxation.

The government asked the OTS to carry out a review of partnership taxation as part of the 2013 Budget. The OTS published an interim report on 22 January 2014, an update on its review on 25 July 2014 and its final report on 19 January 2015. The final report included recommendations that HMRC clarify its guidance and improve its administrative procedures relating to partnerships.

For background to this measure, see Private client tax legislation tracker 2014-15: OTS review of partnership taxation.

(See HM Treasury: March Budget 2015, paragraph 2.194.)

The following measures were announced as unchanged (or with only minor technical amendments) and will be included in the pre-election Finance Bill due to be published on 24 March 2015:

The government will review the use of deeds of variation for tax purposes. The Chancellor announced in his Budget speech that the results of the review will be reported by the autumn.

This announcement is unexpected but follows recent news stories about the use of deeds of variation by the families of high profile politicians to minimise inheritance tax. For information about deeds of variation, see Practice note, After death variations: overview.

This announcement will not lead to measures to be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March). Depending on the outcome of the review and of the general election on 7 May 2015, it may lead to measures to be included in a later Finance Bill.

(See HM Treasury: March Budget 2015, paragraph 2.91 and Chancellor George Osborne's March Budget 2015 speech.)

As announced in Autumn Statement 2014 the existing inheritance tax (IHT) exemption for members of the armed forces who die or whose death is caused or hastened by injury while on active service will be extended to emergency service personnel and humanitarian aid workers responding to emergencies. The extension will have effect for deaths on or after 19 March 2014. The draft legislation published on 10 December 2014 will be amended to clarify the fact that the exemption is also available to serving and former police officers and service personnel targeted because of their status.

For information on the consultation held during the summer of 2014 that preceded this measure and to follow the progress of the legislation, see Private client tax legislation tracker 2014-15: IHT: exemption for emergency services personnel. See also Legal update, 2014 Autumn Statement: private client implications: IHT: exemption for emergency service personnel and humanitarian aid workers.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

(See HM Treasury: March Budget 2015, paragraph 2.94 and Overview, paragraph 1.42.)

As announced in Autumn Statement 2014 the existing inheritance tax (IHT) exemption for medals and other decorations for valour or gallantry will be extended to all medals and decorations awarded to the armed services or emergency service personnel, and to awards made by the Crown for achievements and service in public life. The measure will have effect from 3 December 2014 and has not been changed following the consultation period.

We are following the progress of this measure in Private client tax legislation tracker 2014-15: IHT: excluded property: medals and other awards. See also Legal update, 2014 Autumn Statement: private client implications: IHT: exemption for medals and other awards.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

(See HM Treasury: March Budget 2015, paragraph 2.93 and Overview, page 13.)

As announced at Autumn Statement 2014, the government will make minor changes to legislation dealing with interest payments on inheritance tax (IHT), although no details have yet been announced. This is intended to support HMRC's new online IHT service to be introduced during 2015-16, which is designed to reduce administrative burden and was announced in the 2013 Autumn Statement (see Legal update, 2014 Autumn Statement: private client implications: IHT interest changes to support HMRC's new digital service, HM Treasury: Autumn Statement 2013, paragraph 2.64 and HM Treasury: Autumn Statement 2013: policy costings, page 38).

Draft regulations will also be published shortly after the Budget to facilitate the use of electronic communications. Again this will support the introduction of the new IHT digital service.

To follow the development of HMRC's online services, see Private client tax legislation tracker 2013-14: HMRC online services.

The changes to legislation dealing with interest payments on IHT will not be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March). Depending on the outcome of the general election on 7 May 2015, it may be included in a later Finance Bill in 2015 or in the Finance Bill 2016.

(See HM Treasury: March Budget 2015, paragraph 2.92 and Overview, paragraph 2.24 and page 20.)

The government has confirmed that it will not introduce a settlement nil rate band, but will introduce new rules to target avoidance through the use of multiple trusts and simplify the calculation of inheritance tax (IHT) charges in relevant property trusts, as announced in the 2014 Autumn Statement. However, it has announced changes to draft legislation published on 10 December 2014 in response to concerns raised by stakeholders.

The draft legislation contained rules to prevent settlors from obtaining IHT advantages by increasing the value of assets in more than one trust on the same day, known as the same-day addition (SDA) rules. The changes announced in the Budget are that:

These changes are welcome in principle, but it will not be possible to advise clients on the full implications until the government publishes amended legislation.

For more information about the draft legislation in its current form and changes to the taxation of relevant property trusts in the Finance Acts 2013 and 2014, see Practice note, Inheritance tax: relevant property trusts: changes to rules. For further background and to follow future developments, see Private client tax legislation tracker 2014-15: IHT: relevant property trust charges.

This measure will not be included in the pre-election Finance Bill due to be published on 24 March 2015, contrary to the expectations of some commentators. Depending on the outcome of the general election on 7 May 2015, it may be included in a future Finance Bill. It is unclear when the government intends to publish amended legislation if it is re-elected.

For more information, see Private client tax legislation tracker 2014-15: After death: IHT: relevant property trust charges.

(See HM Treasury: March Budget 2015, paragraph 2.95 and Overview, paragraph 2.25.)

As announced in Autumn Statement 2014, the annual charge paid by some non-UK domiciled but UK resident individuals who use the remittance basis of taxation will increase from April 2015. The charge for those who have been UK resident for at least seven out of the nine tax years before the relevant tax year will remain at £30,000. The charge for those who have been UK resident for at least 12 out of the previous 14 tax years will increase from £50,000 to £60,000. There will be a new charge of £90,000 for those who have been UK resident for at least 17 out of the previous 20 tax years.

For more information about the current rules, see Practice notes, Remittance basis: what individuals need to know: overview and Remittance basis: remittance basis charge.

For more information about the announcements on the changes in Autumn Statement 2014 and the government's consultation on making an election to use the remittance basis apply for a minimum of three years, see Legal update, 2014 Autumn statement: private client implications: Remittance basis charges to increase.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

For more information, see Private client tax legislation tracker 2014-15: International individuals: Remittance basis: charge from 2015-16.

(See HM Treasury: March Budget 2015, paragraph 2.73 and Overview, page 12.)

The government has confirmed that, from 6 April 2015, non-UK resident persons (including individuals, trustees, personal representatives and certain closely-held companies), will be subject to capital gains tax on disposals of UK residential property. Non-resident individuals will be subject to tax at the same rates as UK resident individuals (28% or 18% on gains above the annual exempt amount). Non-resident companies will be subject to tax at the same rates as UK companies (20%) and will have access to an indexation allowance.

The government consulted on these changes in 2014 and draft legislation was published on 10 December 2014. For further information on these proposed provisions, see Practice note, Capital gains tax: disposals of UK residential property by non-residents.

It appears this measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

For more information, see Private client tax legislation tracker 2014-15: International individuals: CGT: disposal of UK residential property by non-residents.

(See HMRC: Capital Gains Tax for non-UK residents: sales and disposals of UK residential property: Frequently Asked Questions, HM Treasury: March Budget 2015, paragraph 2.100 and Overview, page 13.)

Measures to restrict principal private residence relief from capital gains tax (CGT) in circumstances where a property is located in a jurisdiction in which a taxpayer is not tax resident. In those circumstances, a property will only be capable of being regarded as a main residence in tax years where the taxpayer or his spouse is present in the property at midnight for at least 90 days.

On 28 March 2014, the government published a consultation paper setting out its plans to extend CGT to gains made by non-residents disposing of UK residential property. To avoid non-residents electing to treat their UK property as their principal private residence in order to circumvent the new extended CGT charge, the government proposed removing the ability to elect for principal private residence relief to apply to a particular residence for both UK resident and non-UK resident individuals. Following negative responses to a consultation on the proposal, the measures to be included in Finance Bill 2015 are much narrower in scope.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

For more information on this measure, see Legal update, Finance Bill 2015: principal private residence relief: new residence restriction.

(See HM Treasury: March Budget 2015, paragraph 2.101 and Overview, page 13.)

The Liechtenstein Disclosure Facility (LDF) and similar facilities for the Crown Dependencies (Jersey, Guernsey and the Isle of Man) will all close at the end of 2015, instead of April 2016 and September 2016 respectively. They will be replaced by a tougher disclosure facility with increased penalties and no immunity from criminal prosecution. The new facility will be introduced between 2016 and mid-2017 before the introduction of the OECD common reporting standard (CRS) (see Common Reporting Standard: intermediaries' duty to provide information).

The LDF agreed by the UK and Liechtenstein on 11 August 2009 is set out in a memorandum of understanding and supplemented by four joint declarations. The LDF enables taxpayers to declare previously undisclosed assets to HMRC, allowing qualifying taxpayers to regularise their tax affairs on favourable terms. For further information on the LDF see Practice note, UK/Switzerland tax co-operation agreement and Liechtenstein Disclosure Facility: comparison tables.

For information about the Crown Dependency facilities and the CRS, see Private client tax legislation tracker 2014-15: FATCA-style agreements with other jurisdictions.

(See HM Treasury: March Budget 2015, paragraphs 1.242, 2.198 and 2.199, Overview, paragraphs 2.27, 2.29 and 2.30 and HM Government: March Budget 2015: policy costings, page 33 and Annex B.7.)

It was confirmed that this measure was unchanged and would be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

For the background to this measure, see Private client tax legislation tracker 2014-15: Offshore tax evasion: strengthening civil sanctions.

(See HM Treasury: March Budget 2015, paragraph 2.202 and Overview, page 13.)

The government will introduce secondary legislation to increase the maximum amount of small cash donations that a charity can claim top-up payments for in any tax year under the Gift Aid Small Donations Scheme (GASDS) from £5,000 to £8,000.

This means that the maximum top-up payment that a charity or a community amateur sports club will be able to claim with effect from 6 April 2016 will be £2000 (it is currently £1,250). For details of the current maximum top-up payment that a charity can claim under GASDS and how it is calculated, see Practice note, Gift Aid Small Donations Scheme (GASDS): How much can be claimed?.

This measure will not be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March). Depending on the outcome of the general election on 7 May 2015, it may be included in future secondary legislation.

(See HM Treasury: March Budget 2015, paragraph 2.104 and Overview, paragraph 2.9.)

The government has announced that it is working with the Financial Conduct Authority (FCA), the Charity Investors' Group (CIG) and the Charity Commission to introduce a new Charity Authorised Investment Fund (CAIF) structure.

According to a joint press release from CIG and the Charity Law Association (CLA), a CAIF will be a FCA-regulated investment fund that only a charity can invest in and that is itself a registered charity, established for the purpose of promoting the efficiency and effectiveness of charities.

The new structure will replicate many of the benefits of the existing Common Investment Fund (CIF), such as the ability to claim charity tax reliefs and to have an independent advisory committee to represent charity unit holders. In addition, it will benefit from the same regulatory oversight and protections as funds for retail investors (CIFs are unregulated investment funds) and an exemption from VAT on investment management fees (with a potential saving of up to £13 million a year for charity investors). An existing CIF will be able to convert to a CAIF.

The Investment Association is working with the CLA on developing a model trust deed for the new structure. For further information about CIFs, see Legal update, Charity Commission issues new model Common Investment Funds schemes: Common investment funds.

(See CIG and CLA: New Charity Authorised Investment Fund Structure (CAIF) (18 March 2015) and HM Treasury: March Budget 2015, paragraph 2.108.)

The government has reiterated its commitment to encouraging direct investment by individuals in social enterprises by expanding the Social Investment Tax Relief (SITR) scheme. In January 2015, it submitted a formal application to the EU Commission for state aid clearance for an enlarged scheme and has announced the following specific measures:

For guidance on SITR, see Practice note, Social investment tax relief (SITR). To review and track the development of SITR, see Private client tax legislation tracker 2014-15: Social investment tax relief. To compare the key features of EIS, SEIS and SITR, see Practice note, Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and social investment tax relief (SITR): key features.

(See HM Treasury: Budget 2015 announcements on Social Investment Tax Relief, HM Treasury: March Budget 2015, paragraphs 2.77 and 2.78 and Overview, paragraph 1.7.)

In the 2014 Autumn Statement, the government announced that it would introduce a stand-alone Social Venture Capital Trust scheme to enable retail investors to make indirect investments in social enterprises via a separate legal entity, similar to and based on the Venture Capital Trust (VCT) scheme. Specific design features of the new scheme were then announced, see Legal update, Finance Bill 2015: enlarging the social investment tax relief (SITR) scheme: New social Venture Capital Trust scheme.

The government has now announced the following further design features:

For further information about VCTs, see Practice note, Venture Capital Trusts.

(See HM Treasury: Budget 2015 announcements on Social Investment Tax Relief, HM Treasury: March Budget 2015, paragraph 2.78 and Overview, paragraph 2.12.)

As announced in the 2014 Autumn Statement, a measure will be introduced in Finance Bill 2015 to add new sections 33C and 33D to the Value Added Tax Act 1994 to enable the following to be eligible for refunds on VAT incurred on the purchase of goods and services, and the acquisition and importation of goods from outside the UK, used for their non-business activities:

Draft legislation to provide the VAT refund scheme for search and rescue and air ambulance charities, but not hospices, was included in the draft Finance Bill 2015, see Private client tax legislation tracker 2014-15: VAT refunds for hospices, search and rescue and air ambulance charities.

The government has now announced that the VAT refund scheme will be extended to include medical courier charities whose main purpose is to provide a free, out of hours service to the NHS, transporting urgently needed items, such as blood, platelets, samples for analysis, drugs, patient notes, small medical instruments and donor breast milk.

The measure will have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2015. It will give these types of charity broadly the same level of VAT recovery as is currently afforded to the established emergency services and NHS bodies.

(See TIINs, VAT: refunds for palliative care charities and VAT: refunds to medical courier charities, HM Treasury: March Budget 2015, paragraphs 2.109-2.111 and Overview, paragraphs 1.23 and 1.26, page 11 and Annex A.)

A measure to amend or extend the rules in the Income Tax Act 2007 to enable non-charity intermediaries to have a greater role in Gift Aid, in order to make it easier to claim Gift Aid on donations made through such intermediaries by digital channels (such as, by text message or online). For further detail, see Private client tax legislation tracker 2014-15: Gift Aid: digital giving.

This measure will be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March), with no changes made to the final legislation following consultation, except small, technical amendments.

(See HM Treasury: March Budget 2015, paragraph 2.106 and Overview, page 12.)

As announced in the 2014 Autumn Statement, the government is conducting a broad, structural review of business rates. A consultation paper was published on 16 March 2015. The consultation closes on 12 June 2015 and review findings are expected to be reported by Budget 2016. For further information see Legal update, HM Treasury publishes consultation paper on business rates review.

As part of its review, the government will evaluate the impact of business rates reliefs and exemptions to assess whether they are achieving their intended aim in the most effective and appropriate way. While the consultation paper does not recommend any changes to charity business rates relief, practitioners who advise charities will wish to keep track of developments. Charity representative organisations have called for sector-wide vigilance to ensure that this vitally-important relief for charities is protected.

(HM Treasury: March Budget 2015, paragraphs 1.103, 1.110 and 2.181.)

The Office for Civil Society will procure a partner to deliver subsidised fundraising training to small charities in 2015-16.

(See HM Treasury: March Budget 2015, paragraph 2.105.)

The government has announced that the following financial support will be provided to the charity sector:

A measure will be introduced in Finance Bill 2015 to make a technical amendment to ensure that the Commonwealth War Graves Commission (CWGC) and the Imperial War Graves Endowment Fund Trustees (which provides investment income for CWGC) are treated as charities for tax purposes and can continue to claim charity tax reliefs. The measure will have effect from Royal Assent to the pre-election Finance Bill 2015.

(See TIIN, Status for tax purposes of certain bodies, HM Treasury: March Budget 2015, paragraph 2.107 and Overview, paragraph 1.43 and Annex A.)

The government will publish a roadmap in 2015 setting out proposed policy and administration changes to replace annual tax returns for individuals and small businesses with digital tax accounts. The government will also consult, in the summer of 2015, on a new payment process to allow income tax and national insurance contributions to be collected outside the PAYE and self assessment tax return system.

In his Budget speech, George Osborne announced that information to allow HMRC to assess most individuals' tax liability will be automatically uploaded into the new digital tax accounts. Only a minority of individuals with more complicated tax affairs will need to provide additional information to manage their accounts online.

This measure is intended to be implemented over the course of the next Parliament and will not be included in the pre-election Finance Bill due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

(See HMRC: Making Tax Easier, HM Treasury: March Budget 2015, paragraphs 1.108-1.109 and 2.187-2.188, Overview, paragraph 2.26 and HM Treasury, Chancellor George Osborne's March Budget 2015 speech.)

HM Treasury will introduce regulations to impose due diligence and reporting obligations for UK financial institutions. The regulations will require financial institutions to identify UK tax resident account holders and to collect and report information on them. The changes ensure that the UK complies with its obligations under the EU Revised Directive on Administrative Cooperation (Council Directive 2014/107/EU) (DAC) to improve international tax compliance and the UK’s obligations under Competent Authority Agreements with non-EU jurisdictions for the Common Reporting Standard (CRS).

In addition, the regulations will:

Tax information exchange agreements (TIEA) allow the signatory governments to enforce their domestic tax laws by exchanging, on request, information relevant to a tax matter covered by the TIEA. The UK has signed a large number of TIEAs in recent years as a result of an Organisation for Economic Co-operation and Development (OECD) initiative to improve tax transparency by tax havens, see Practice note, Double taxation treaties and agreements (income, capital gains and corporation tax).

Draft legislation has yet to be published, but the regulations will have effect on and after 1 January 2016 in relation to the DAC and the CRS Competent Authority Agreements, and 21 days from the date these regulations are laid in relation to the Foreign Account Tax Compliance Act agreement.

(See TIIN, Tax administration: regulations to implement the UK's automatic exchange of information agreements, HM Treasury: March Budget 2015, paragraph 2.196, Overview, paragraph 1.44 and Annex A and HM Government: March Budget 2015: policy costings, page 33.)

The government will be empowered to legislate to require financial intermediaries and tax advisers to notify their UK resident customers with UK or overseas accounts of the full impact of the Common Reporting Standard (CRS), the opportunities to disclose and the penalties they could face for non-disclosure. (For details of the CRS disclosure facility, see Early closure of Liechtenstein and Crown Dependency disclosure facilities.) For more information about the CRS, see Tax legislation tracker: compliance, disputes and investigations: Implementing obligations under competent authority agreements and common reporting standards.

This measure will not be included in Finance Bill 2015, which is due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March). The government intends to include it in future (presumably primary) legislation.

The government will also invest £4 million in data analytics resources to maximise the yield from CRS data.

(See HM Treasury: March Budget 2015, paragraphs 2.200 and 2.201 and Overview, paragraph 2.28.)

Legislation to implement the previously announced changes to the DOTAS regime will be included in the first (pre-general election) Finance Bill of 2015 due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March).

The changes include:

Regulations will also be published to make changes to the hallmarks including the financial product, standardised tax products, loss schemes and inheritance tax hallmarks. The inheritance tax hallmark will include schemes seeking to avoid IHT during a person's lifetime and after death.

These changes were announced in the 2014 Autumn Statement (see Legal update, 2014 Autumn Statement: business tax implications: Promoters and users of tax avoidance schemes) and draft legislation published for consultation on 10 December 2014 (see Legal update, Draft Finance Bill 2015 legislation: key business tax measures: Strengthening the DOTAS regime).

For more information, see Private client tax legislation tracker 2014-15: DOTAS: strengthening rules.

(See HM Treasury: March Budget 2015, paragraph 2.207 and Overview, page 13.)

Legislation to implement two previously announced changes to the Promoters of Tax Avoidance Schemes (POTAS) regime will be included in the first (pre-general election) Finance Bill of 2015 due to be published on 24 March 2015 (see Legal update, Finance Bill 2015 to be published on 24 March). These changes are to:

These measures were announced in the 2014 Autumn Statement (see Legal update, 2014 Autumn Statement: business tax implications: Promoters and users of tax avoidance schemes) and a tax information and impact assessment was published in December 2014 (see Legal update, Draft Finance Bill 2015 legislation: key business tax measures: Changes to the high risk promoters regime).

In addition, the government confirmed that legislation will be introduced "in due course" to widen the scope of the POTAS regime to bring promoters into the regime if a significant proportion of their notified schemes fail. HMRC consulted on these proposals in January 2015 (see Legal update, Consultation on sanctions for serial tax avoiders and GAAR-specific penalties).

For information about the POTAS regime, see Practice note, Tax avoidance schemes: high risk promoters: conduct and monitoring notices and Private client tax legislation tracker 2014-15: High-risk promoters: clarifying regime.

(See HM Treasury: March Budget 2015, paragraphs 2.203 and 2.204 and Overview, paragraph 2.32.)

The government confirmed that legislation will be introduced in a future Finance Bill to impose further sanctions on serial tax avoiders. The additional sanctions will include increased financial penalties for inaccuracies in returns (where returns are inaccurate because of failed avoidance schemes), increased reporting obligations, "naming and shaming" and restricting access to tax reliefs.

HMRC consulted on these proposals in January 2015 (see Legal update, Consultation on sanctions for serial tax avoiders and GAAR-specific penalties). A response document has yet to be published.

For more information, see Private Client tax legislation tracker 2014-15: HMRC and tax policy: Deterring serial avoiders

(See HM Treasury: March Budget 2015, paragraphs 1.243 and 2.203 and Overview, paragraph 2.32.)

Legislation will be introduced in a future Finance Bill to impose a tax-geared GAAR-specific penalty. HMRC consulted on whether such a penalty would have a useful deterrent effect in January 2015 (see Legal update, Consultation on sanctions for serial tax avoiders and GAAR-specific penalties). HMRC has yet to publish a response document or draft legislation. For details of the GAAR, see Practice note, General anti-abuse rule (GAAR) and to track the progress of this measure to implementation, see Private client tax legislation tracker 2014-15: GAAR-related penalties.

(See HM Treasury: March Budget 2015, paragraph 1.244 and Overview, paragraph 2.33.)

The Chancellor confirmed that HMRC is to issue 21,000 more accelerated payment notices than previously announced.

For information about accelerated payment notices, see Practice note, Tax avoidance schemes: follower and accelerated payment notices.

(See HM Treasury: March Budget 2015, paragraphs 1.245 and 2.206 and Chancellor George Osborne's March Budget 2015 speech.)

On 19 March 2015, the government will publish comprehensive plans for new criminal offences for tax evasion and new penalties for those professional who assist tax evaders. No further details are available but this appears to be a response to the recent HSBC controversy. In addition, the pre-election Finance Bill due to be published on 24 March 2015 will include the enhanced civil penalties for offshore tax evasion confirmed in the 2014 Autumn Statement (see Offshore tax evasion: enhanced civil penalties).

(See HM Treasury: Chancellor George Osborne's March Budget 2015 speech.)

The government highlighted that it is currently consulting on changes to the current regime for direct tax failure penalties.

The consultation, which was prompted by the Office of Tax Simplification's review of tax penalties, was launched on 2 February 2015 and closes at 12pm on 11 May 2015.

For background to this measure, see Private client tax legislation tracker 2014-15: Penalties reform and for information on the current regime, see Practice note, Tax penalties: direct tax: failure penalties.

(See HM Treasury: March Budget 2015 , paragraph 2.192.)

HMRC is considering the responses to a consultation that was held between 18 December 2014 and 12 March 2015 on a proposed power to enable HMRC to close one or more aspects of a tax enquiry while leaving other aspects open.

For background to this measure, see Legal update, Tax enquiries: HMRC consultation on individual aspect closure notices.

(See Overview, paragraph 2.31.)

The government has confirmed its intention to introduce legislation to allow HMRC to directly recover tax debts from the bank and building society accounts of tax debtors.

Direct recovery of debts was first announced in May 2014 and draft legislation was published on 10 December 2014 (see Legal update, Direct recovery of debts: draft legislation).

This measure will not be included in the first (pre-general election) Finance Bill of 2015 due to be published on 24 March 2015. Depending on the outcome of the general election on 7 May 2015, it may be included in a future Finance Bill.

For more information, see Private client legislation tracker: HMRC and tax policy: Direct recovery of tax debts.

(See Overview, paragraph 2.34.)