Finance Act 2021 receives early Royal Assent

16 Jun 2021

Royal Assent of Finance Act 2021 was granted on 10 June, bringing the extended loss carry-back, super-deduction and other measures into force.

The Act had not been expected to become law until July, but now Royal Assent has been granted it will prompt the issue of commencement orders for provisions, including the 130% capital allowances super-deduction for companies; the Plastic Packaging Tax; penalties for late filing of tax returns; penalties for late payment of tax; and VAT late payment and repayment interest.

The extended loss carry back provisions apply to trading losses arising in company accounting periods ending between 1 April 2020 and 31 March 2022 and trading losses of unincorporated businesses of the 2020/21 and 2021/22 tax years.

HMRC is now expected to update its guidance on the mechanism for making de minimis claims (standalone or group company with losses capable of providing relief up to a maximum of £200,000).

Royal Assent also triggers amendments to HMRC's civil information powers by introducing a Financial Institution Notice (FIN), which makes it easier for HMRC to obtain information about a taxpayer from a third party, such as the taxpayer's bank or building society.

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