The Finance (No. 2) Bill received its second reading in the Commons on 1 April 2014. A Committee of the Whole House debated nine clauses and one schedule on 8 and 9 April, covering income and corporation tax rates, married couples and civil partners’ tax relief, bank levy and air passenger duty.
ERS guidance
HMRC has issued new guidance which explains that, from 6 April 2014, HMRC must be told about company share schemes and other employment related securities arrangements using the new employment related securities (ERS) online service. The updated guidance explains the registration procedure and how to notify HMRC about grants of EMI options..
Professional fees
The Income Tax (Professional Fees) Order, SI 2014/859, amends ITEPA 2003 by adding two new items to the list of professional fees qualifying for a deduction from earnings of employment with effect from 6 April 2014. These are trainee registration fees payable by specialised dental trainees and annual registration fees paid by veterinary nurses to the Royal College of Veterinary Surgeons.
Tax credits
The Tax Credits (Late Appeals) Order, SI 2014/885, restores the ability of HMRC to accept late tax credit appeals, in exceptional circumstances, for up to 12 months following the normal 30-day time limit. The Tax Credits, Child Benefit and Guardian’s Allowance Reviews and Appeals Order, SI 2014/886, introduces a new stage called ‘mandatory reconsideration before appeal’ in the decision making process for child benefit and guardian’s allowance from 6 April 2014.
ISA regulations
The Individual Savings Account (Amendment) Regulations, SI 2014/654, introduce a range of changes to the ISA rules. They increase the annual subscription limits (£11,880 for adult ISAs and £3,840 for junior ISAs in 2014/15); modify the rules regarding which institutions can offer ISAs to include certain non-UK based financial institutions; update certain legislative definitions or processes, including those relating to mental disorder, terminal illness and investment trusts; and modify the reporting requirements for ISA providers. Changes relating to the non-UK based institutions that can qualify for approval to offer ISAs will apply from 15 August 2013. Other changes will apply from 6 April 2014.
Exemption for exchange traded funds
The Stamp Duty and Stamp Duty Reserve Tax (Exchange Traded Funds) (Exemption) Regulations, SI 2014/911, ensure that exemptions to stamp duty and SDRT will apply to transfers of interests in UK exchange traded funds (ETFs) from 28 April 2014. ETFs are a collective investment scheme or fund whose shares can be bought and sold on a stock exchange, as well as through the fund manager. It was announced at the 2013 Autumn Statement that stamp duty and SDRT on the purchase of shares in a UK-established ETF will be abolished. This is intended to remove the main barrier to ETFs being domiciled in the UK.
BEPS webcast
A recent OECD webcast suggests that the OECD may streamline its initial proposals for country by country reporting and transfer pricing, which were made as part of the ongoing project to tackle base erosion and profit shifting.
US FATCA
The US Department of Treasury has released a list of jurisdictions that have reached ‘agreements in substance’ with the US in relation to the implementation of FATCA. The list comprises 19 jurisdictions that have opted to enter into a model 1A IGA. Only one jurisdiction, Austria, has decided to enter into a model 2 IGA..
HMRC guidance
New HMRC guidance is available from HMRC’s website, including:
an updated version of the tax residence indicator tool;
new guidance for taxpayers with split pension input periods, that is contribution periods beginning before 14 October 2010, when the government announced the reduction in the annual allowance from £255,000 to £50,000, and ending in the tax year 2011/12;
Notice 700/63: Electronic invoicing: notice updated to reflect the changes in invoicing regulations of 2013 and technological advances;
Revenue & Customs Brief 14/14: This brief announces revised transitional rules for the withdrawal from 1 April 2015 of VAT concessions for the construction of new student accommodation and dining halls;
Notice 179E: Biofuels and other substitutes; and
HMRC’s background information page for UK government securities issued free of tax to residents abroad (FOTRA), to reflect the abolition of ‘ordinary residence’ with effect from 6 April 2013. The exemption condition attaching to FOTRA securities for securities issued on or after this date specifies the holder being ‘non-resident’ rather than being ‘not ordinarily resident’.
The Finance (No. 2) Bill received its second reading in the Commons on 1 April 2014. A Committee of the Whole House debated nine clauses and one schedule on 8 and 9 April, covering income and corporation tax rates, married couples and civil partners’ tax relief, bank levy and air passenger duty.
ERS guidance
HMRC has issued new guidance which explains that, from 6 April 2014, HMRC must be told about company share schemes and other employment related securities arrangements using the new employment related securities (ERS) online service. The updated guidance explains the registration procedure and how to notify HMRC about grants of EMI options..
Professional fees
The Income Tax (Professional Fees) Order, SI 2014/859, amends ITEPA 2003 by adding two new items to the list of professional fees qualifying for a deduction from earnings of employment with effect from 6 April 2014. These are trainee registration fees payable by specialised dental trainees and annual registration fees paid by veterinary nurses to the Royal College of Veterinary Surgeons.
Tax credits
The Tax Credits (Late Appeals) Order, SI 2014/885, restores the ability of HMRC to accept late tax credit appeals, in exceptional circumstances, for up to 12 months following the normal 30-day time limit. The Tax Credits, Child Benefit and Guardian’s Allowance Reviews and Appeals Order, SI 2014/886, introduces a new stage called ‘mandatory reconsideration before appeal’ in the decision making process for child benefit and guardian’s allowance from 6 April 2014.
ISA regulations
The Individual Savings Account (Amendment) Regulations, SI 2014/654, introduce a range of changes to the ISA rules. They increase the annual subscription limits (£11,880 for adult ISAs and £3,840 for junior ISAs in 2014/15); modify the rules regarding which institutions can offer ISAs to include certain non-UK based financial institutions; update certain legislative definitions or processes, including those relating to mental disorder, terminal illness and investment trusts; and modify the reporting requirements for ISA providers. Changes relating to the non-UK based institutions that can qualify for approval to offer ISAs will apply from 15 August 2013. Other changes will apply from 6 April 2014.
Exemption for exchange traded funds
The Stamp Duty and Stamp Duty Reserve Tax (Exchange Traded Funds) (Exemption) Regulations, SI 2014/911, ensure that exemptions to stamp duty and SDRT will apply to transfers of interests in UK exchange traded funds (ETFs) from 28 April 2014. ETFs are a collective investment scheme or fund whose shares can be bought and sold on a stock exchange, as well as through the fund manager. It was announced at the 2013 Autumn Statement that stamp duty and SDRT on the purchase of shares in a UK-established ETF will be abolished. This is intended to remove the main barrier to ETFs being domiciled in the UK.
BEPS webcast
A recent OECD webcast suggests that the OECD may streamline its initial proposals for country by country reporting and transfer pricing, which were made as part of the ongoing project to tackle base erosion and profit shifting.
US FATCA
The US Department of Treasury has released a list of jurisdictions that have reached ‘agreements in substance’ with the US in relation to the implementation of FATCA. The list comprises 19 jurisdictions that have opted to enter into a model 1A IGA. Only one jurisdiction, Austria, has decided to enter into a model 2 IGA..
HMRC guidance
New HMRC guidance is available from HMRC’s website, including:
an updated version of the tax residence indicator tool;
new guidance for taxpayers with split pension input periods, that is contribution periods beginning before 14 October 2010, when the government announced the reduction in the annual allowance from £255,000 to £50,000, and ending in the tax year 2011/12;
Notice 700/63: Electronic invoicing: notice updated to reflect the changes in invoicing regulations of 2013 and technological advances;
Revenue & Customs Brief 14/14: This brief announces revised transitional rules for the withdrawal from 1 April 2015 of VAT concessions for the construction of new student accommodation and dining halls;
Notice 179E: Biofuels and other substitutes; and
HMRC’s background information page for UK government securities issued free of tax to residents abroad (FOTRA), to reflect the abolition of ‘ordinary residence’ with effect from 6 April 2013. The exemption condition attaching to FOTRA securities for securities issued on or after this date specifies the holder being ‘non-resident’ rather than being ‘not ordinarily resident’.
