Of all the announcements in the October Budget one a consultation on simplifying the taxation of offshore interest may not receive much attention but could pave the way the way for a more fundamental shift in how the UK tax system works.
The consultation is concerned with the complexity for UK based taxpayers in declaring their overseas income caused by the mismatch between the UK 5 April tax year end and the 31 December tax year end used by many other countries. The crux of the consultation is that the offshore income declared for a year of assessment would be the income received in the calendar year to 31 December ending in that year of assessment so dispensing with the need for apportionment and reduce confusion and consequent error. According to HMRC this would streamline taxpayer reporting and allow pre-population of self-assessment returns by HMRC ...
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Home >Articles > Autumn Budget 2024: simplifying the taxation of offshore interest - paving the way for a fundamental shift?
Autumn Budget 2024: simplifying the taxation of offshore interest - paving the way for a fundamental shift?
Of all the announcements in the October Budget one a consultation on simplifying the taxation of offshore interest may not receive much attention but could pave the way the way for a more fundamental shift in how the UK tax system works.
The consultation is concerned with the complexity for UK based taxpayers in declaring their overseas income caused by the mismatch between the UK 5 April tax year end and the 31 December tax year end used by many other countries. The crux of the consultation is that the offshore income declared for a year of assessment would be the income received in the calendar year to 31 December ending in that year of assessment so dispensing with the need for apportionment and reduce confusion and consequent error. According to HMRC this would streamline taxpayer reporting and allow pre-population of self-assessment returns by HMRC ...
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