Concerning CGT on transfers of assets between spouses in the process of separating, the CIOT welcomes a three-year extension of the no-gain/no-loss window beyond the tax year of separation but believes that the change would potentially benefit more people if there were an option to elect for the April 2023 disposal date criterion to be backdated to 6 April 2022. The CIOT also comments on the position where individual A transfers an asset into bare trust rather than disposing of it directly to individual B.
On the transfer pricing documentation requirements:
The CIOT suggests a better approach to the requirement to keep transfer pricing records to anyone within the UK’s transfer pricing rules, but penalties only being levied on those companies within the BEPS country-by-country reporting rules, might be for the legislation to apply only to those that are intended to have to comply and carve non-CbCR groups out of the requirement in the first place.
The CIOT could not see the justification for the proposed changes that would allow HMRC to issue information notices in relation to transfer pricing records outside of an enquiry, or why the position in relation to transfer pricing records should be different from other records relevant to the company’s tax position.
The CIOT suggests that entities should be required to keep all records that HMRC might need to inspect, rather than the proposal to remove the safeguard which ensures a recipient of a notice cannot be required to give a document not in their possession where a subsidiary is unable to provide documents which are held by its parent.
Regarding pensions net pay arrangements, the CIOT believed that treating top-up payments made to those who contribute to pension schemes operating net pay arrangements as UK employment income for income tax purposes raises issues with certainty and could give rise to anomalous outcomes. The top-up payments could instead be treated as either a ‘tax nothing’ or a tax refund.
Concerning CGT on transfers of assets between spouses in the process of separating, the CIOT welcomes a three-year extension of the no-gain/no-loss window beyond the tax year of separation but believes that the change would potentially benefit more people if there were an option to elect for the April 2023 disposal date criterion to be backdated to 6 April 2022. The CIOT also comments on the position where individual A transfers an asset into bare trust rather than disposing of it directly to individual B.
On the transfer pricing documentation requirements:
The CIOT suggests a better approach to the requirement to keep transfer pricing records to anyone within the UK’s transfer pricing rules, but penalties only being levied on those companies within the BEPS country-by-country reporting rules, might be for the legislation to apply only to those that are intended to have to comply and carve non-CbCR groups out of the requirement in the first place.
The CIOT could not see the justification for the proposed changes that would allow HMRC to issue information notices in relation to transfer pricing records outside of an enquiry, or why the position in relation to transfer pricing records should be different from other records relevant to the company’s tax position.
The CIOT suggests that entities should be required to keep all records that HMRC might need to inspect, rather than the proposal to remove the safeguard which ensures a recipient of a notice cannot be required to give a document not in their possession where a subsidiary is unable to provide documents which are held by its parent.
Regarding pensions net pay arrangements, the CIOT believed that treating top-up payments made to those who contribute to pension schemes operating net pay arrangements as UK employment income for income tax purposes raises issues with certainty and could give rise to anomalous outcomes. The top-up payments could instead be treated as either a ‘tax nothing’ or a tax refund.
