A round up of other news this week.
In her speech to the CBI’s annual conference, Prime Minister Theresa May gave a commitment for the UK to maintain its status as having the lowest corporation tax rate in the G20. Commenting on this announcement, Robin Walduck at KPMG in the UK suggests that cutting the corporate tax rate is unlikely to be enough to encourage foreign investment.
The Court of Appeal has released the latest decision in the long-running litigation, Test Claimants in the FII Group Litigation v HMRC. It had previously been established that the claimants can seek restitution in respect of Schedule D Case V charges on receipt of EU sourced dividends and advance corporation tax (ACT) on their onward distribution which were both levied in breach of EU law. The current case looks at a number of detailed specific appeal points around the quantification of taxpayers’ claims and the level of credit which should be provided which were originally decided by the High Court in December 2014. The majority of the appeals and cross-appeals have been dismissed.
The FTT recently decided that a company including subcontractor costs within a claim for R&D tax relief must have paid the costs in the accounting period in which they were claimed.
In a recent decision concerning corporation tax returns for multiple late periods filed at the same time, the FTT decided that, where notices to file the returns were all issued at the same time, the increased £500 penalty for a ‘third successive failure’ to file on time could not apply as the company had become liable to all of the penalties at the same time and the third and fourth failures were therefore not ‘successive’.
The Government has published guidance on Inheritance Tax: residence nil rate band. This sets out details of the new home allowance, or residence nil rate band (RNRB), which applies to deaths on or after 6 April 2017.
Letters between the Office of Tax Simplification and HM Treasury have been published. These detail the Government’s response to the OTS’s recent publications, including on the alignment of income tax and National Insurance contributions, and set out requests for new work.
For accounting periods beginning on or after 15 September 2016, qualifying UK companies and partnerships will need to publish their tax strategies online every year. KPMG in the UK have published an updated version of our Tax Strategy Publication flyer, which summarises the key requirements and areas to consider.
The KPMG EU Financial Transaction Tax (FTT) blog has been updated.
Less than one-third of senior executives from global technology companies believe they are ‘very prepared’ to address disruptive technologies, according to a new KPMG report.
After quarterly fintech investment to VC-backed companies peaked as high as $5 billion in 2015, investors continue to take a much more cautious approach this year according to the Pulse of Fintech, the quarterly report on global fintech VC trends published jointly by KPMG International and CB Insights.