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Tax news in brief


Highlights from the broader tax news week ending 26 June, which includes: third reading of Finance Bill confirms corporation tax rate, HMRC reiterates position on VAT treatment of public funds received by FE institutions, HMRC confirms there are now 14 live CCO investigations, new API for corporate interest restriction returns launching in June and more guidance on FPS vs EYU.
Finance Bill 2021 and deferred tax
Under FRS 102 deferred tax must be measured using the tax rates and laws that have been enacted, or substantively enacted, by the reporting date, and that are expected to apply to the reversal of the timing difference. For revalued non-depreciable assets and investment properties, this is the rate expected to apply to the sale of the asset). Finance Bill 2021 had its third reading on 24 May 2021 and is now considered substantively enacted. This means that the 25% main rate of corporation tax and marginal relief will be relevant for any asset sales or timing differen ....

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The tax implications of COVID support schemes


As HMRC confirms delays in processing self assessment returns with incorrectly reported SEISS grants, the Tax Faculty has published guidance for all ICAEW members on the tax issues arising from the UK’s coronavirus support schemes.
The government’s COVID-19 financial support schemes, namely the Coronavirus Job Retention Scheme (CJRS) and Self-employment Income Support Scheme (SEISS) give rise to a number of tax issues, separate from the rules that apply to the schemes themselves.
The guide, which is freely available to all ICAEW members, starts by outlining the tax treatment of grants. For example, CJRS grants are subject to income or corporation tax and follows accounting treatment required by GAAP, meanwhile SEISS grants are subject to income tax and class 4 national insurance contributions, generally in the year in which they are received. ....

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