HMRC has publishes revised terms and conditions and consultation response on double taxation treaty passport scheme (see http://bit.ly/2oIiLvp).
HMRC has publishes revised terms and conditions and consultation response on double taxation treaty passport scheme (see http://bit.ly/2oIiLvp).
As announced at Spring Budget 2017, HMRC has confirmed that the double taxation treaty passport (DTTP) scheme will be extended for loans entered into on or after 6 April 2017. The announcement is contained in HMRC’s response to its consultation on renewing and extending the scope of the DTTP, which it has now published along with revised guidance and terms and conditions for the scheme, which also apply to loans entered into on or after 6 April 2017.
Key elements of the government’s response include:
the scheme will be made available to all UK borrowers that have an obligation to deduct withholding tax, including UK partnerships, individuals and charities;
transparent entities (including partnerships) will be admitted to the scheme as lenders where all of the constituent beneficial owners of the income are entitled to the same treaty benefits under the same treaty; and
sovereign wealth funds and pension funds who are utilising withholding tax treaty rates will be admitted into the scheme as lenders.
We understand that:
the published guidance collates the previous terms and conditions and guidance (in effect what was covered in the old version’s FAQs) and will ultimately be incorporated into one of the HMRC manuals and customer-facing guide on gov.uk;
HMRC will not be producing separate (more formal looking) terms and conditions;
although not mentioned in the revised scheme, overseas individual lenders (as well as UK individuals) should in principle be able to benefit from the scheme if HMRC would accept a certified claim (i.e. normal double taxation treaty relief process) from them for reduced or nil withholding;
the guidance that states that a lender is considered to have started a new loan for the purposes of the DTTP where they transfer an existing loan (entered into before 6 April 2017) also applies to the borrower;
the partnership passport is more suitable to stable partnerships with a few members, because a single partnership passport will be unmanageable if a partnership has many members or there is a lot of turnover of members;
HMRC will amend DTTP30640 to remove a potential conflict with DTTP30610, clarifying that where electronic submission has taken place and electronic acknowledgement has been received DTTP30610 will apply.
HMRC also confirmed that it is working on a new form DTTP2 and accompanying guidance that should be available online in a few months’ time, and that it is open to receiving feedback on the current versions of the guidance and terms and conditions, which may be amended following feedback.
HMRC has publishes revised terms and conditions and consultation response on double taxation treaty passport scheme (see http://bit.ly/2oIiLvp).
HMRC has publishes revised terms and conditions and consultation response on double taxation treaty passport scheme (see http://bit.ly/2oIiLvp).
As announced at Spring Budget 2017, HMRC has confirmed that the double taxation treaty passport (DTTP) scheme will be extended for loans entered into on or after 6 April 2017. The announcement is contained in HMRC’s response to its consultation on renewing and extending the scope of the DTTP, which it has now published along with revised guidance and terms and conditions for the scheme, which also apply to loans entered into on or after 6 April 2017.
Key elements of the government’s response include:
the scheme will be made available to all UK borrowers that have an obligation to deduct withholding tax, including UK partnerships, individuals and charities;
transparent entities (including partnerships) will be admitted to the scheme as lenders where all of the constituent beneficial owners of the income are entitled to the same treaty benefits under the same treaty; and
sovereign wealth funds and pension funds who are utilising withholding tax treaty rates will be admitted into the scheme as lenders.
We understand that:
the published guidance collates the previous terms and conditions and guidance (in effect what was covered in the old version’s FAQs) and will ultimately be incorporated into one of the HMRC manuals and customer-facing guide on gov.uk;
HMRC will not be producing separate (more formal looking) terms and conditions;
although not mentioned in the revised scheme, overseas individual lenders (as well as UK individuals) should in principle be able to benefit from the scheme if HMRC would accept a certified claim (i.e. normal double taxation treaty relief process) from them for reduced or nil withholding;
the guidance that states that a lender is considered to have started a new loan for the purposes of the DTTP where they transfer an existing loan (entered into before 6 April 2017) also applies to the borrower;
the partnership passport is more suitable to stable partnerships with a few members, because a single partnership passport will be unmanageable if a partnership has many members or there is a lot of turnover of members;
HMRC will amend DTTP30640 to remove a potential conflict with DTTP30610, clarifying that where electronic submission has taken place and electronic acknowledgement has been received DTTP30610 will apply.
HMRC also confirmed that it is working on a new form DTTP2 and accompanying guidance that should be available online in a few months’ time, and that it is open to receiving feedback on the current versions of the guidance and terms and conditions, which may be amended following feedback.
