It has been reported that the US Treasury and IRS are considering allowing US-headed groups to file Country by Country (CbC) reports on a voluntary basis for 2016. This would prevent the need for overseas subsidiaries of US groups to file secondary reports in jurisdictions, such as the UK, that are implementing CbC reporting in 2016. We will provide an update in a future edition of Tax Matters Digest if an official announcement is made confirming this.
The Chancellor of the Exchequer has confirmed that payments made by banks to regulators are viewed as “a routine cost of doing business” and are therefore “generally deductible for Corporation Tax purposes”, in his latest response to a letter from Rt Hon. Andrew Tyre MP, Chairman of the Treasury Committee.
A new section 3.44 on Digital/Social giving has been added to chapter 3 of HMRC’s detailed guidance notes for charities. This additional guidance makes it clear that Gift Aid can only be applied to an individual’s own money and it cannot be applied to money that has been collected from others. The problem this guidance seeks to address is that it is common for messages of support from family and friends to be attached to donations made on charity giving websites, making it unclear whether the donation is from an individual (so that Gift Aid could apply) or a collective donation (so that Gift Aid cannot apply).
A new double tax treaty with the UAE was signed recently. No further details are yet available.
KPMG’s annual UK challenger bank report finds that against several key measurements challenger banks continue to outpace the big five.
A new Statutory Instrument will ensure that transfers to the Homes and Communities Agency (a public body) under specific provisions of the Housing and Regeneration Act 2008 will qualify for relief from Stamp Duty Land Tax from 26 May 2016.