A round up of other news this week.
HM Treasury have published explanatory notes on the Finance (No.2) Bill 2017 resolutions tabled on 20 July, setting out which measures will have retrospective effect. The House of Commons motion to approve the Ways and Means Resolutions for these measures is scheduled for 6 September 2017.
The OECD have published a report on neutralising the effects of branch mismatches. This report recommends changes to domestic law that would bring the treatment of branch mismatch structures into line with the intended outcomes of the OECD’s 2015 report on hybrid mismatch arrangements, which did not directly consider branch issues. We will consider the detail of the report in a further article in next week’s Tax Matters Digest.
The Court of Appeal has published its judgment in HMRC v Hely-Hutchinson. By way of judicial review, the taxpayer challenged HMRC’s denial of his capital loss claims in relation to employee share schemes as he had relied on HMRC guidance that was subsequently changed, and the High Court accepted this argument. The Court of Appeal has now allowed HMRC’s appeal against the High Court’s decision.
HMRC have published an overview paper on the tax implications of FRS 105, which sets out the key accounting changes and tax considerations for businesses transitioning from the Financial Reporting Standard for Smaller Entities (FRSSE) and old UK GAAP to FRS 105.
Potential US tax reform could have a profound impact on multinational corporations and the thousands of Americans living and working abroad. Ben Francis at KPMG in the US takes a look at some of the issues in a recent article in KPMGVoice for Forbes.
When contracting out ceased on 6 April 2016 the DWP introduced a new, simpler, option for schemes to use to be treated as a qualifying scheme for automatic enrolment – the ‘cost of accruals’ test. On 19 July 2017 it launched a call for evidence to see whether or not its policy intentions are being achieved – in particular how the simplifications and flexibilities introduced under the cost of accruals test work in practice, and whether there are any unintended consequences. The consultation closes on 30 August.
The Air Departure Tax (Scotland) Act 2017 received Royal Assent on 25 July 2017. The Act allows for the devolved taxation of the carriage of passengers by air from airports in Scotland.
UK CEOs reveal that their organisations are struggling to keep pace with technological advances but see technology disruption as an opportunity rather than a threat, according to KPMG’s CEO Outlook 2017.
The number of UK venture capital (VC) deals fell significantly during the second quarter of 2017, yet deal value surged to its highest level since the end of 2015 according to Venture Pulse Q2 2017, the quarterly global VC trends report published by KPMG Enterprise.