The Films (Definition of ‘British Film’) Order, SI 2015/86, modifies the statutory test used to assess whether a film is ‘culturally British’, with effect from 29 January 2015. This cultural test is a qualifying condition for film production companies to claim corporation tax relief. This change will align the film cultural test with the other three cultural tests for tax reliefs in respect of high-end television, animation programmes and video games production.
NIC Bill progress
The National Insurance Contributions Bill has completed its passage through the House of Lords. The House of Lords passed the Bill with amendments on 21 January 2015. A new clause 1 removes the requirement for employers to pay Class 1 NICs for apprentices under the age of 25 from April 2016. Other amendments ensure that future changes to primary legislation in relation to class 2 NICs by statutory instrument shall be subject to the affirmative procedure. The House of Commons debated these amendments on 3 February 2015.
Construction industry scheme and JVs
HM Treasury has released The Income Tax (Construction Industry Scheme) (Amendment of Schedule 11 to the Finance Act 2004) Order, SI 2015/Draft. Following consultation, these draft regulations relax the construction industry scheme (CIS) compliance tests with effect from April 2015 for all members of joint ventures where one member already has gross payment status. These regulations form part of a package of measures being introduced with the aim of simplifying the scheme.
EU Joint Transfer Pricing Forum
The European Commission has adopted a decision to set up the EU Joint Transfer Pricing Forum (EJTPF) expert group. The EJTPF will consist of representatives of member states’ tax administrations and 18 chosen organisations and will operate until 31 March 2019. The Commission has published a call for applications to interested organisations (i.e. companies, associations, NGOs, trade unions, universities, research institutes, union agencies, union bodies and international organisations) in order to select suitable experts, and will ask member states to nominate representatives of their tax administrations. Applications must be submitted by 25 February 2015. Members of the EJTPF will be asked to attend meetings, contribute actively to discussions and examine and provide comments on meeting documents. To apply, see the instructions in the document.
UK/Iceland treaty
The UK/Iceland double taxation convention, signed on 17 December 2013, entered into force on 10 November 2014.
HMRC clarifies R&D position on reimbursed expenses
HMRC has restated its position that reimbursed expenses, such as travel and subsistence, will not generally come within the definition of ‘staffing costs’ qualifying for relief as R&D expenditure. The issue was discussed at a meeting of the R&D Consultative Committee in October 2014.
AIFMD tax mechanism
HMRC has published a collection of forms and guidance on the new Alternative Investment Fund Managers Directive (AIFMD) tax mechanism which, from 2014/15 onwards, allows AIFM partnerships to elect to pay on behalf of their individual members the additional rate tax arising on profits deferred under rules in the directive.
Revenue Scotland regulations
The following regulations and order have been laid before the Scottish Parliament:
The Revenue Scotland and Tax Powers Act (Fees for Payment) Regulations, SSI 2015/36, will set at 1.4% the fee for online credit card payments in respect of tax, interest or penalties made to Revenue Scotland with effect from 1 April 2015.
The Revenue Scotland and Tax Powers Act (Involved Third Party) Order, SI 2015/37, specifies Scottish landfill tax as a relevant devolved tax and defines who is an ‘involved third party’ and what are ‘relevant documents’ in relation to taxable disposals with effect from 1 April 2015.
The Revenue Scotland and Tax Powers Act (Privileged Communications) Regulations, SSI 2015/38, come into force on 1 April 2015 and set out the procedure to be followed where there is a dispute between Revenue Scotland and a person about whether a document required under an information notice is subject to legal professional privilege. There are separate procedures and time limits depending on whether the notice is given in the course of correspondence or in the course of an inspection visit.
The Films (Definition of ‘British Film’) Order, SI 2015/86, modifies the statutory test used to assess whether a film is ‘culturally British’, with effect from 29 January 2015. This cultural test is a qualifying condition for film production companies to claim corporation tax relief. This change will align the film cultural test with the other three cultural tests for tax reliefs in respect of high-end television, animation programmes and video games production.
NIC Bill progress
The National Insurance Contributions Bill has completed its passage through the House of Lords. The House of Lords passed the Bill with amendments on 21 January 2015. A new clause 1 removes the requirement for employers to pay Class 1 NICs for apprentices under the age of 25 from April 2016. Other amendments ensure that future changes to primary legislation in relation to class 2 NICs by statutory instrument shall be subject to the affirmative procedure. The House of Commons debated these amendments on 3 February 2015.
Construction industry scheme and JVs
HM Treasury has released The Income Tax (Construction Industry Scheme) (Amendment of Schedule 11 to the Finance Act 2004) Order, SI 2015/Draft. Following consultation, these draft regulations relax the construction industry scheme (CIS) compliance tests with effect from April 2015 for all members of joint ventures where one member already has gross payment status. These regulations form part of a package of measures being introduced with the aim of simplifying the scheme.
EU Joint Transfer Pricing Forum
The European Commission has adopted a decision to set up the EU Joint Transfer Pricing Forum (EJTPF) expert group. The EJTPF will consist of representatives of member states’ tax administrations and 18 chosen organisations and will operate until 31 March 2019. The Commission has published a call for applications to interested organisations (i.e. companies, associations, NGOs, trade unions, universities, research institutes, union agencies, union bodies and international organisations) in order to select suitable experts, and will ask member states to nominate representatives of their tax administrations. Applications must be submitted by 25 February 2015. Members of the EJTPF will be asked to attend meetings, contribute actively to discussions and examine and provide comments on meeting documents. To apply, see the instructions in the document.
UK/Iceland treaty
The UK/Iceland double taxation convention, signed on 17 December 2013, entered into force on 10 November 2014.
HMRC clarifies R&D position on reimbursed expenses
HMRC has restated its position that reimbursed expenses, such as travel and subsistence, will not generally come within the definition of ‘staffing costs’ qualifying for relief as R&D expenditure. The issue was discussed at a meeting of the R&D Consultative Committee in October 2014.
AIFMD tax mechanism
HMRC has published a collection of forms and guidance on the new Alternative Investment Fund Managers Directive (AIFMD) tax mechanism which, from 2014/15 onwards, allows AIFM partnerships to elect to pay on behalf of their individual members the additional rate tax arising on profits deferred under rules in the directive.
Revenue Scotland regulations
The following regulations and order have been laid before the Scottish Parliament:
The Revenue Scotland and Tax Powers Act (Fees for Payment) Regulations, SSI 2015/36, will set at 1.4% the fee for online credit card payments in respect of tax, interest or penalties made to Revenue Scotland with effect from 1 April 2015.
The Revenue Scotland and Tax Powers Act (Involved Third Party) Order, SI 2015/37, specifies Scottish landfill tax as a relevant devolved tax and defines who is an ‘involved third party’ and what are ‘relevant documents’ in relation to taxable disposals with effect from 1 April 2015.
The Revenue Scotland and Tax Powers Act (Privileged Communications) Regulations, SSI 2015/38, come into force on 1 April 2015 and set out the procedure to be followed where there is a dispute between Revenue Scotland and a person about whether a document required under an information notice is subject to legal professional privilege. There are separate procedures and time limits depending on whether the notice is given in the course of correspondence or in the course of an inspection visit.
