The Van Benefit and Car and Van Fuel Benefit Order, SI 2014/2896, comes into force on 31 December 2014. This order increases the multiplier figure used to calculate the cash equivalent of the benefit of fuel received by an employee for private motoring in a company car to £22,100 (currently £21,700) with effect from 6 April 2015. The cash equivalent of the benefit of a van is increased to £3,150 (from £3,090) and the van fuel benefit figure is increased to £594 (from £581).
Tackling aggressive tax planning consultation
The government is consulting until 11 February 2015 on proposals for new UK rules to neutralise the effect of hybrid mismatch arrangements in accordance with the recommendations of Action 2 of the G20/OECD BEPS project. A hybrid mismatch describes arrangements which exploit asymmetries between different tax jurisdictions. The OECD aims to complete its work on the outstanding issues by September 2015 and UK rules will apply to payments made on or after 1 January 2017.
Capital allowance designated assisted areas
The Capital Allowances (Designated Assisted Areas) Order, SI 2014/3183, which comes into force on 23 December 2014, formally designates assisted areas within enterprise zones in which expenditure on plant and machinery may qualify for 100% first-year capital allowances, and has effect in relation to expenditure incurred between 1 April 2012 and 31 March 2020. This is the first order to be made under powers introduced in Finance Act 2012, which have been designed to comply with EU state aid rules.
Employer NIC abolished for under-21s
From 6 April 2015, employers will no longer have to pay secondary Class 1 NICs on earnings up to the Upper Secondary Threshold for employees under 21 years of age. The guidance contains details of the seven new NIC category letters employers will have to use when submitting payroll information for employees in the 16 to 20 age group.
VAT regulations
The Statistics of Trade (Customs and Excise) (Amendment) Regulations, SI 2014/3135, increase from £1.2m to £1.5m the threshold above which VAT-registered businesses must provide intrastat arrivals declarations, with effect from 1 January 2015. The Value Added Tax (Sport) Order, SI 2014/3185, amends VATA 1994 with effect from 1 January 2015 to give effect to HMRC’s change of policy following the CJEU judgment in Bridport & West Dorset Golf Club. This will ensure that supplies of sporting services made to non-members as well as members of non-profit making sports clubs can qualify to be treated as exempt from VAT.
Stamp Duty Land Tax Bill
The Stamp Duty Land Tax (Residential Property Transactions) Bill was presented to Parliament on 4 December 2014 and had its second reading debate on 10 December. As announced in the Autumn Statement, the Bill provides for the restructuring of SDLT on purchases of residential property with effect from 4 December 2014. The charge is now made at different rates depending on the portion of the purchase price that falls within each rate band.
FATCA: Turks and Caicos Islands sign IGA with the US
The Turks and Caicos Islands have become the latest jurisdiction to officially sign a FATCA intergovernmental agreement (IGA) with the US. It is based on Model 1B IGA. The Turks and Caicos Islands originally reached an ‘agreement in substance’ for a Model 1 IGA on 12 May 2014.
Report on HMRC powers of entry
The HMRC report on its powers of entry was recently published. This review, ordered by chancellor, examines powers of entry held by HMRC. Although the report identified a minority of powers that were ripe for modernisation, the majority were proportionate and would be retained with minimal, if any, amendment. Among the powers that HMRC intend to retain unchanged are its powers under FA 2008 Sch 36 to inspect premises and other property, as well its powers to enter premises for the purposes of valuation (paras 4.3.22 and 4.3.23).
The Van Benefit and Car and Van Fuel Benefit Order, SI 2014/2896, comes into force on 31 December 2014. This order increases the multiplier figure used to calculate the cash equivalent of the benefit of fuel received by an employee for private motoring in a company car to £22,100 (currently £21,700) with effect from 6 April 2015. The cash equivalent of the benefit of a van is increased to £3,150 (from £3,090) and the van fuel benefit figure is increased to £594 (from £581).
Tackling aggressive tax planning consultation
The government is consulting until 11 February 2015 on proposals for new UK rules to neutralise the effect of hybrid mismatch arrangements in accordance with the recommendations of Action 2 of the G20/OECD BEPS project. A hybrid mismatch describes arrangements which exploit asymmetries between different tax jurisdictions. The OECD aims to complete its work on the outstanding issues by September 2015 and UK rules will apply to payments made on or after 1 January 2017.
Capital allowance designated assisted areas
The Capital Allowances (Designated Assisted Areas) Order, SI 2014/3183, which comes into force on 23 December 2014, formally designates assisted areas within enterprise zones in which expenditure on plant and machinery may qualify for 100% first-year capital allowances, and has effect in relation to expenditure incurred between 1 April 2012 and 31 March 2020. This is the first order to be made under powers introduced in Finance Act 2012, which have been designed to comply with EU state aid rules.
Employer NIC abolished for under-21s
From 6 April 2015, employers will no longer have to pay secondary Class 1 NICs on earnings up to the Upper Secondary Threshold for employees under 21 years of age. The guidance contains details of the seven new NIC category letters employers will have to use when submitting payroll information for employees in the 16 to 20 age group.
VAT regulations
The Statistics of Trade (Customs and Excise) (Amendment) Regulations, SI 2014/3135, increase from £1.2m to £1.5m the threshold above which VAT-registered businesses must provide intrastat arrivals declarations, with effect from 1 January 2015. The Value Added Tax (Sport) Order, SI 2014/3185, amends VATA 1994 with effect from 1 January 2015 to give effect to HMRC’s change of policy following the CJEU judgment in Bridport & West Dorset Golf Club. This will ensure that supplies of sporting services made to non-members as well as members of non-profit making sports clubs can qualify to be treated as exempt from VAT.
Stamp Duty Land Tax Bill
The Stamp Duty Land Tax (Residential Property Transactions) Bill was presented to Parliament on 4 December 2014 and had its second reading debate on 10 December. As announced in the Autumn Statement, the Bill provides for the restructuring of SDLT on purchases of residential property with effect from 4 December 2014. The charge is now made at different rates depending on the portion of the purchase price that falls within each rate band.
FATCA: Turks and Caicos Islands sign IGA with the US
The Turks and Caicos Islands have become the latest jurisdiction to officially sign a FATCA intergovernmental agreement (IGA) with the US. It is based on Model 1B IGA. The Turks and Caicos Islands originally reached an ‘agreement in substance’ for a Model 1 IGA on 12 May 2014.
Report on HMRC powers of entry
The HMRC report on its powers of entry was recently published. This review, ordered by chancellor, examines powers of entry held by HMRC. Although the report identified a minority of powers that were ripe for modernisation, the majority were proportionate and would be retained with minimal, if any, amendment. Among the powers that HMRC intend to retain unchanged are its powers under FA 2008 Sch 36 to inspect premises and other property, as well its powers to enter premises for the purposes of valuation (paras 4.3.22 and 4.3.23).
