HMRC is gathering evidence until 11:45pm on 8 January 2015 from interested parties about the potential impact of the withdrawal of three extra-statutory concessions (ESCs) – two for income tax, and one for CGT:
Withdrawal of ESCs
HMRC is gathering evidence until 11:45pm on 8 January 2015 from interested parties about the potential impact of the withdrawal of three extra-statutory concessions (ESCs) – two for income tax, and one for CGT:
EIM03002 allowing individuals (usually vets) to treat their employment income as trading income not subject to PAYE;
EIM64120 under which income arising from sports testimonials is not taxed as general earnings of the individual; and
ESC D45 allowing CGT roll-over into depreciating assets of a trade on death of the trader.
HMRC is consulting until 25 November 2014 on draft amending regulations which set out the requirements for UK-based employment intermediaries to make quarterly reports to HMRC, from 6 April 2015, giving details of all workers they place who are not treated as employees subject to PAYE. This follows changes to the agency legislation introduced in Finance Act 2014. HMRC issued guidance on these new reporting requirements in September 2014.
Non-resident trusts and woodlands ESCs consultation
HMRC is consulting until 27 November 2014 on whether the draft legislation for two existing ESCs – ESC D40 (CGT on participators in companies controlled by trustees of non-resident trusts) and ESC F15 (IHT potentially-exempt transfers involving woodlands subject to a deferred estate duty charge) – maintains the purpose and effect of those ESCs. This is the latest in a series of technical consultations held since 2008 on giving statutory effect to existing concessions which exceed the scope of HMRC’s discretion, following the House of Lords judgment in Wilkinson.
Remittance basis commercial loan rule change
The CIOT, STEP, Expatriate Forum, ICAEW and Law Society have published a note of a meeting held with HMRC and HM Treasury during September to discuss HMRC's policy change that would see the unremitted collateral for commercial loans of non-domiciled individuals taxed in the UK as a remittance with effect from 4 August 2014. HMRC has commented on, but not agreed, the text of this note.
The OECD has published its revised timetable for stakeholder consultation on the BEPS project. The discussion draft for BEPS actions 8 to 10 will be available for comment from mid-October, while the discussion drafts for actions 7 and 6 will be available from end of October and mid-November respectively. A webcast giving an update on progress will be scheduled some time in November, while further discussion drafts will be released for consultation on actions 1, 4, 8, 9, 10 and 14 in December. Further work and consultations on BEPS action points are scheduled to run throughout 2015 from January to July.
a company providing in-house taxation services to companies in the same group; and
individuals advising on discrete points of law or accountancy, but not on the overall design of a tax avoidance scheme.
The regulations will have retrospective effect from 17 July 2014 (the date of royal assent to FA 2014).
Changes to bereavement service
HMRC has announced that from 13 October 2014, personal representatives of deceased taxpayers will no longer have to complete form R27. HMRC is replacing the form with an automated process for PAYE information and a more tailored service for self-assessment taxpayers. For PAYE customers, HMRC is replacing the form with an automated process that is simple for customers and more efficient for HMRC; and for self-assessment customers, HMRC says it will provide a tailored service, which will include letters that match the individual’s circumstances.
HMRC guidance
HMRC has issued the following on its website:
Notice 453: Gaming duty;
Revenue & Customs Brief 33/2014: Reporting PPI interest payments outside the UK;
HMRC is gathering evidence until 11:45pm on 8 January 2015 from interested parties about the potential impact of the withdrawal of three extra-statutory concessions (ESCs) – two for income tax, and one for CGT:
Withdrawal of ESCs
HMRC is gathering evidence until 11:45pm on 8 January 2015 from interested parties about the potential impact of the withdrawal of three extra-statutory concessions (ESCs) – two for income tax, and one for CGT:
EIM03002 allowing individuals (usually vets) to treat their employment income as trading income not subject to PAYE;
EIM64120 under which income arising from sports testimonials is not taxed as general earnings of the individual; and
ESC D45 allowing CGT roll-over into depreciating assets of a trade on death of the trader.
HMRC is consulting until 25 November 2014 on draft amending regulations which set out the requirements for UK-based employment intermediaries to make quarterly reports to HMRC, from 6 April 2015, giving details of all workers they place who are not treated as employees subject to PAYE. This follows changes to the agency legislation introduced in Finance Act 2014. HMRC issued guidance on these new reporting requirements in September 2014.
Non-resident trusts and woodlands ESCs consultation
HMRC is consulting until 27 November 2014 on whether the draft legislation for two existing ESCs – ESC D40 (CGT on participators in companies controlled by trustees of non-resident trusts) and ESC F15 (IHT potentially-exempt transfers involving woodlands subject to a deferred estate duty charge) – maintains the purpose and effect of those ESCs. This is the latest in a series of technical consultations held since 2008 on giving statutory effect to existing concessions which exceed the scope of HMRC’s discretion, following the House of Lords judgment in Wilkinson.
Remittance basis commercial loan rule change
The CIOT, STEP, Expatriate Forum, ICAEW and Law Society have published a note of a meeting held with HMRC and HM Treasury during September to discuss HMRC's policy change that would see the unremitted collateral for commercial loans of non-domiciled individuals taxed in the UK as a remittance with effect from 4 August 2014. HMRC has commented on, but not agreed, the text of this note.
The OECD has published its revised timetable for stakeholder consultation on the BEPS project. The discussion draft for BEPS actions 8 to 10 will be available for comment from mid-October, while the discussion drafts for actions 7 and 6 will be available from end of October and mid-November respectively. A webcast giving an update on progress will be scheduled some time in November, while further discussion drafts will be released for consultation on actions 1, 4, 8, 9, 10 and 14 in December. Further work and consultations on BEPS action points are scheduled to run throughout 2015 from January to July.
a company providing in-house taxation services to companies in the same group; and
individuals advising on discrete points of law or accountancy, but not on the overall design of a tax avoidance scheme.
The regulations will have retrospective effect from 17 July 2014 (the date of royal assent to FA 2014).
Changes to bereavement service
HMRC has announced that from 13 October 2014, personal representatives of deceased taxpayers will no longer have to complete form R27. HMRC is replacing the form with an automated process for PAYE information and a more tailored service for self-assessment taxpayers. For PAYE customers, HMRC is replacing the form with an automated process that is simple for customers and more efficient for HMRC; and for self-assessment customers, HMRC says it will provide a tailored service, which will include letters that match the individual’s circumstances.
HMRC guidance
HMRC has issued the following on its website:
Notice 453: Gaming duty;
Revenue & Customs Brief 33/2014: Reporting PPI interest payments outside the UK;
