On 22 July 2020, the Finance Bill 2019-2021 received royal assent becoming an Act of the British Parliament (the Finance Act 2020).
The Finance Act 2020 introduces a number of important amendments, including, without being limited to, the following highlights:
- changes to the IR35 legislation that concerns cases according to which a worker, who is engaged through an intermediary, should be treated as an employee rather than a worker for tax purposes. From 6 April 2021, the changes will entail that all public sector clients in addition to medium-sized or large private sector clients will be responsible for deciding a worker's employment status;
- changes to the Loan Charge legislation that concerns the loan charge imposed on disguised remuneration under which a person is paid via a loan that is never repaid. The changes limit the loan charge's application to loans entered into force after 9 December 2010;
- changes to principal private residence relief concerning, in particular, the exemption period at the end of ownership that is reduced to 9 months in most cases;
- the introduction of the Digital Services Tax; and
- changes to the General Anti Abuse Rule (GAAR), including protecting adjustments under the GAAR before the time limit expires and the issuing of protective GAAR notices.
The Finance Act 2020 can be accessed here.