Treasury announces new ISAs for crowdfunding loans and further consultation: The consultation response document summarises the comments received in response to the consultation on including peer-to-peer loans in ISAs and the government’s decisions regarding policy design and implementation. This includes the decision to introduce a new type of ISA for peer-to-peer loans – the Innovative Finance ISA – alongside cash ISAs and stocks and shares ISAs. The government intends to publish draft legislation for technical consultation later this year, with a view to legislating to allow peer-to-peer loans to be held in an ISA from 6 April 2016. The further consultation on extending stocks and shares ISAs to include investments offered via crowdfunding platforms will run until 30 September.  (Source: ISA Qualifying Investments: Consultation on Including Peer-to-peer Loans and ISA Qualifying Investments: Consultation on Whether to Include Investment Based Crowdfunding)

Treasury announces summer budget: The summer budget, announced on 8 July, includes:

  • introducing a new 8% tax on banking sector profits from January 2016; 
  • introducing a phased reduction in the rate of the bank levy from 0.21% to 0.1% between 2016 and 2021; 
  • excluding UK banks’ overseas subsidiaries from the bank levy from January 2021;
  • clamping down on carried interest in funds so that individuals to whom a gain arises in the form of carried interest are taxed on their true, economic gain. Capital gains tax will be charged on the full amounts individuals receive in respect of their carried interest, with deductions only in respect of sums actually given by the individuals as consideration for acquiring the right to that carried interest. The changes will not affect arm's length co-investing. This measure takes effect in relation to any carried interest arising on or after 8 July; and
  • a proposal that criteria for determining fund managers' performance-linked rewards should be taxed as income, on which HM Revenue and Customs seeks comment by 30 September.

(Source: Summer Budget 2015)

Treasury reviews FPC remit: George Osborne has written to Mark Carney setting out Treasury's views on FPC's remit. He notes that FPC has focused on banking sector resilience and can now give its attention to the wider financial sector. He also wants it to focus on identification and mitigation of both systemic and non-systemic risks, including cyber risks. (Source: Treasury Reviews FPC Remit)

Treasury updates sanctions: Treasury has updated the sanctions lists in respect of terrorism and terrorist finance and the Ukraine. (Source: Treasury Updates Sanctions)