On 22 February 2024, the UK government officially enacted the Finance Act 2024 after receiving royal assent on the same date. This Act enforces the previously outlined measures in the Autumn Statement 2023. The Autumn Statement was delivered on 22 November 2023.
One of the key aspects of the Act is the amendments to the pillar 2 global minimum tax rules and new measures related to tax offenses and avoidance schemes.
The Schedule 12 makes amendments to the Finance Act 2023 in relation to multinational top-up tax and in relation to domestic top-up tax. These modifications ensure alignment with the OECD model rules. They will come into effect for accounting periods starting on or after 31 December 2023,
The Schedule 13 of Finance Act 2023 makes provision for HMRC to apply for disqualification orders under the Company Directors Disqualification Act 1986 in connection with the promotion of tax avoidance schemes. Other new measures that are enacted regarding tax offenses and avoidance schemes are as follows:
- The maximum prison sentence for serious tax fraud has been extended from 7 to 14 years.
- A new criminal offense has been established for individuals who continue promoting avoidance schemes after being ordered to stop.
