HMRC is consulting until 27 February 2015 on ways to improve access to R&D tax credits for small businesses. The consultation focuses on the key areas of awareness, design and understanding of the rules and administration of the advance assurance process. Responses can be sent either by a full representation or by completing an online survey. See the consultation document, entitled Improving access to research and development tax credits for small business.
HM Treasury has published the Childcare Payments (Eligibility) Regulations, SI 2015/Draft. These draft regulations contain the detailed rules concerning eligibility for top-up payments under the ‘tax-free childcare’ scheme enacted by the Childcare Payments Act 2014. Amendments made to the initial draft published for consultation between July and October 2014 include: extension of the window in during which a person could apply for a childcare account in anticipation of starting work from 7 to 14 days; and revision of the rules to determine the minimum earnings threshold for self-employed individuals.
HMRC is consulting until 16 March 2015 on draft regulations (The Income Tax (Travel Expenses of Members of Local Authorities) Regulations, SI 2015/Draft) to introduce a new exemption from income tax for travel expenses paid to councillors by their local authority. The exemption is expected to take effect from 6 April 2015. Primary legislation for the measure was published with the draft Finance Bill on 10 December 2014.
HMRC has published the Individual Savings Account (Amendment) Regulations, SI 2015/Draft, setting out how changes to the ISA rules relating to the transfer of benefits to the surviving spouse or civil partner upon death will operate. These draft regulations provide for the spouse or civil partner of a deceased ISA saver to receive an additional ISA allowance up to the value of the deceased’s ISA savings at the time of death. They also provide that the additional ISA allowance does not count against the surviving spouse’s/civil partner’s annual ISA subscription limit and update ISA manager reporting requirements to reflect this additional allowance. Comments are invited until 20 February 2015..
HMRC is consulting until 11 February 2015 on draft regulations (The Hydrocarbon Oil and Biofuels (Road Fuel in Defined Areas) (Reliefs) (Amendment) Regulations, SI 2015/Draft) giving effect to the extended rural fuel duty relief scheme, covering 17 rural areas of the UK in addition to the current remote islands scheme, from 1 May 2015. The European Commission approved the UK government’s application for a derogation from the Energy Products Directive in respect of the extended scheme in January 2015.
The US Internal Revenue Service (IRS) has opened its international data exchange service (IDES), for financial institutions and tax authorities to send information on financial accounts held by US persons to the IRS as required under FATCA or an intergovernmental agreement (IGA). Where a jurisdiction has a reciprocal IGA and has the necessary safeguards and infrastructure in place, the IRS will also use IDES to provide information to that jurisdiction's tax authority about accounts in US financial institutions held by the jurisdiction’s residents. The US has more than 110 IGAs, either signed or agreed in substance. This includes Qatar, which on 9 January 2015 became the 54th jurisdiction to formally sign an IGA. It is based on model 1B IGA. Qatar originally reached an ‘agreement in substance’ for a model 1 IGA on 2 April 2014.
The governments of the UK and Monaco signed a tax information exchange agreement in London on 22 October 2014 and in Monaco on 23 December 2014. The agreement has not yet entered into force. The UK government also signed a new double taxation agreement with Croatia in Zagreb on 15 January 2015. This treaty has also not yet entered into force. The International Tax Enforcement (Macao) Order, SI 2015/Draft, has been published. This draft order will bring into effect the UK/Macao tax information exchange agreement, which was signed on 3 September 2014 but has not yet entered into force.
The European Commission has published an updated edition of its list of VAT rates applied in each EU member state at 1 January 2015.
The European Commission has published a report examining possible options for reform of the VAT rules for passenger transport. This seeks to address perceived distortions of competition arising from differences in application of the current rules between member states.
The Public Accounts Committee heard evidence on the effective management of tax reliefs on 14 January. Witnesses included Lin Homer, HMRC chief executive and permanent secretary; Jim Harra, HMRC director general of business tax; and Indra Morris, director general of tax and welfare at HM Treasury. Many of the previous arguments were restated.
HMRC has issued the following on its website:
HMRC is consulting until 27 February 2015 on ways to improve access to R&D tax credits for small businesses. The consultation focuses on the key areas of awareness, design and understanding of the rules and administration of the advance assurance process. Responses can be sent either by a full representation or by completing an online survey. See the consultation document, entitled Improving access to research and development tax credits for small business.
HM Treasury has published the Childcare Payments (Eligibility) Regulations, SI 2015/Draft. These draft regulations contain the detailed rules concerning eligibility for top-up payments under the ‘tax-free childcare’ scheme enacted by the Childcare Payments Act 2014. Amendments made to the initial draft published for consultation between July and October 2014 include: extension of the window in during which a person could apply for a childcare account in anticipation of starting work from 7 to 14 days; and revision of the rules to determine the minimum earnings threshold for self-employed individuals.
HMRC is consulting until 16 March 2015 on draft regulations (The Income Tax (Travel Expenses of Members of Local Authorities) Regulations, SI 2015/Draft) to introduce a new exemption from income tax for travel expenses paid to councillors by their local authority. The exemption is expected to take effect from 6 April 2015. Primary legislation for the measure was published with the draft Finance Bill on 10 December 2014.
HMRC has published the Individual Savings Account (Amendment) Regulations, SI 2015/Draft, setting out how changes to the ISA rules relating to the transfer of benefits to the surviving spouse or civil partner upon death will operate. These draft regulations provide for the spouse or civil partner of a deceased ISA saver to receive an additional ISA allowance up to the value of the deceased’s ISA savings at the time of death. They also provide that the additional ISA allowance does not count against the surviving spouse’s/civil partner’s annual ISA subscription limit and update ISA manager reporting requirements to reflect this additional allowance. Comments are invited until 20 February 2015..
HMRC is consulting until 11 February 2015 on draft regulations (The Hydrocarbon Oil and Biofuels (Road Fuel in Defined Areas) (Reliefs) (Amendment) Regulations, SI 2015/Draft) giving effect to the extended rural fuel duty relief scheme, covering 17 rural areas of the UK in addition to the current remote islands scheme, from 1 May 2015. The European Commission approved the UK government’s application for a derogation from the Energy Products Directive in respect of the extended scheme in January 2015.
The US Internal Revenue Service (IRS) has opened its international data exchange service (IDES), for financial institutions and tax authorities to send information on financial accounts held by US persons to the IRS as required under FATCA or an intergovernmental agreement (IGA). Where a jurisdiction has a reciprocal IGA and has the necessary safeguards and infrastructure in place, the IRS will also use IDES to provide information to that jurisdiction's tax authority about accounts in US financial institutions held by the jurisdiction’s residents. The US has more than 110 IGAs, either signed or agreed in substance. This includes Qatar, which on 9 January 2015 became the 54th jurisdiction to formally sign an IGA. It is based on model 1B IGA. Qatar originally reached an ‘agreement in substance’ for a model 1 IGA on 2 April 2014.
The governments of the UK and Monaco signed a tax information exchange agreement in London on 22 October 2014 and in Monaco on 23 December 2014. The agreement has not yet entered into force. The UK government also signed a new double taxation agreement with Croatia in Zagreb on 15 January 2015. This treaty has also not yet entered into force. The International Tax Enforcement (Macao) Order, SI 2015/Draft, has been published. This draft order will bring into effect the UK/Macao tax information exchange agreement, which was signed on 3 September 2014 but has not yet entered into force.
The European Commission has published an updated edition of its list of VAT rates applied in each EU member state at 1 January 2015.
The European Commission has published a report examining possible options for reform of the VAT rules for passenger transport. This seeks to address perceived distortions of competition arising from differences in application of the current rules between member states.
The Public Accounts Committee heard evidence on the effective management of tax reliefs on 14 January. Witnesses included Lin Homer, HMRC chief executive and permanent secretary; Jim Harra, HMRC director general of business tax; and Indra Morris, director general of tax and welfare at HM Treasury. Many of the previous arguments were restated.
HMRC has issued the following on its website:
