The OECD is consulting until 23 February 2014 on a draft of revised guidance on transfer pricing documentation and country by country reporting, as part of action 13 of its BEPS action plan. Specific issues on which comments would be appreciated are noted in the draft. Comments should be submitted in writing by 23 February 2014. A public consultation event will be held at the OECD in Paris at the end of March 2014 with specifically invited persons selected from among those who provide written comments. An open discussion of the draft with all interested persons will take place at a future date to be determined in April or May.
FATCA
Following the signature of reciprocal agreements based on US FATCA between the UK and the Crown dependencies (the Isle of Man, Guernsey and Jersey) as well as Gibraltar, the UK will introduce regulations (The International Tax Compliance (UK, Isle of Man, Guernsey, Jersey and Gibraltar) Regulations 2014) to implement these agreements and impose obligations on UK financial institutions. HMRC has now published draft guidance notes designed to aid UK financial institutions in understanding their obligations under these new regulations.
Film relief
HMRC has published a summary of the take-up of film relief, which was introduced in January 2007 to promote the sustainable production of British films. Between January 2007 and July 2013, 1,390 film productions have become eligible to claim the new film tax relief since its inception. Of these, 1,050 film productions have made claims for a total £1.1bn. So far, payments totalling £995m have been made.
CIS: deduction of levy paid to CITB
HMRC has announced that, from 6 April 2014, it will no longer allow contractors to recoup the levy paid to the Construction Industry Training Board (CITB) in the form of a deduction made from the ‘gross amount of payment’ shown on a contractor’s monthly return. This change will also have VAT implications as the value of a subcontractor’s supply will no longer be reduced by the levy.
Revised Notice 702: imported goods
HMRC has published VAT Information Sheet 02/14, which provides guidance on the application of the zero-rate for VAT on buildings that are designed as a dwelling or dwellings (meeting the conditions of VATA 1994 Sch 8 Group 5 note 2) and are also intended for use as a building used for a relevant residential purpose (RRP) (meeting the conditions of VATA 1994 Sch 8 Group 5 note 4).
Biofuel regulations
HMRC has published draft legislation – amending the Other Fuel Substitutes (Rates of Excise Duty Etc) Order 1995 and the Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc) Regulations 2004 – for consultation until 15 February 2014, providing, inter alia, for additives or extenders used in hydrocarbon oil on which a rebate of duty has been allowed to be charged at the same rebated rate as the oil to which they are added, bringing UK rules into line with EU law. The changes will come into effect from 1 April 2014.
DOTAS guidance
HMRC guidance entitled Disclosure of tax avoidance schemes has been updated to reflect legislative changes in relation to information HMRC collects about users of notifiable tax avoidance schemes, new and revised hallmarks (descriptions of schemes to be disclosed) and the new annual tax on enveloped dwellings.
Withdrawal of ESCs
In light of the House of Lords’ decision in Wilkinson [2005] UKHL 30 – on the scope of HMRC’s discretion to allow concessions – HMRC is reviewing its concessions. Most ESCs will continue in their current form and HMRC is giving statutory effect to those concessions which exceed its discretion. However, 13 concessions relating to VAT and inheritance tax will need to be withdrawn with effect from 1 April 2015 for the VAT concessions and 6 April 2015 for the others. HMRC recognises that taxpayers may have to make adjustments, and promises to generally offer an appropriate period of notice before the concessionary treatment formally comes to an end.
The OECD is consulting until 23 February 2014 on a draft of revised guidance on transfer pricing documentation and country by country reporting, as part of action 13 of its BEPS action plan. Specific issues on which comments would be appreciated are noted in the draft. Comments should be submitted in writing by 23 February 2014. A public consultation event will be held at the OECD in Paris at the end of March 2014 with specifically invited persons selected from among those who provide written comments. An open discussion of the draft with all interested persons will take place at a future date to be determined in April or May.
FATCA
Following the signature of reciprocal agreements based on US FATCA between the UK and the Crown dependencies (the Isle of Man, Guernsey and Jersey) as well as Gibraltar, the UK will introduce regulations (The International Tax Compliance (UK, Isle of Man, Guernsey, Jersey and Gibraltar) Regulations 2014) to implement these agreements and impose obligations on UK financial institutions. HMRC has now published draft guidance notes designed to aid UK financial institutions in understanding their obligations under these new regulations.
Film relief
HMRC has published a summary of the take-up of film relief, which was introduced in January 2007 to promote the sustainable production of British films. Between January 2007 and July 2013, 1,390 film productions have become eligible to claim the new film tax relief since its inception. Of these, 1,050 film productions have made claims for a total £1.1bn. So far, payments totalling £995m have been made.
CIS: deduction of levy paid to CITB
HMRC has announced that, from 6 April 2014, it will no longer allow contractors to recoup the levy paid to the Construction Industry Training Board (CITB) in the form of a deduction made from the ‘gross amount of payment’ shown on a contractor’s monthly return. This change will also have VAT implications as the value of a subcontractor’s supply will no longer be reduced by the levy.
Revised Notice 702: imported goods
HMRC has published VAT Information Sheet 02/14, which provides guidance on the application of the zero-rate for VAT on buildings that are designed as a dwelling or dwellings (meeting the conditions of VATA 1994 Sch 8 Group 5 note 2) and are also intended for use as a building used for a relevant residential purpose (RRP) (meeting the conditions of VATA 1994 Sch 8 Group 5 note 4).
Biofuel regulations
HMRC has published draft legislation – amending the Other Fuel Substitutes (Rates of Excise Duty Etc) Order 1995 and the Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc) Regulations 2004 – for consultation until 15 February 2014, providing, inter alia, for additives or extenders used in hydrocarbon oil on which a rebate of duty has been allowed to be charged at the same rebated rate as the oil to which they are added, bringing UK rules into line with EU law. The changes will come into effect from 1 April 2014.
DOTAS guidance
HMRC guidance entitled Disclosure of tax avoidance schemes has been updated to reflect legislative changes in relation to information HMRC collects about users of notifiable tax avoidance schemes, new and revised hallmarks (descriptions of schemes to be disclosed) and the new annual tax on enveloped dwellings.
Withdrawal of ESCs
In light of the House of Lords’ decision in Wilkinson [2005] UKHL 30 – on the scope of HMRC’s discretion to allow concessions – HMRC is reviewing its concessions. Most ESCs will continue in their current form and HMRC is giving statutory effect to those concessions which exceed its discretion. However, 13 concessions relating to VAT and inheritance tax will need to be withdrawn with effect from 1 April 2015 for the VAT concessions and 6 April 2015 for the others. HMRC recognises that taxpayers may have to make adjustments, and promises to generally offer an appropriate period of notice before the concessionary treatment formally comes to an end.
