Other news in brief | KPMG | UK

Other news in brief

Other news in brief

A round up of other news this week.

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The European Commission has published its letter to the UK, setting out its opening position in relation to the State aid investigation into the UK’s CFC regime’s Finco exemption.

The Government has published the Taxation (Cross-Border Trade) Bill, which is intended to give the UK the ability to establish a standalone customs regime, and ensure that VAT and excise legislation operates effectively, following Brexit. Supporting documents to the Bill have also been released.

Legislation will be introduced into next year’s Finance Bill to relieve from stamp duty or stamp duty land tax (as appropriate) certain transactions involved in managing a failed financial institution. The targeted transactions are:

  • Transfers of shares or land to a temporary bridging entity; or 
  • Transfers of shares for an issue of certificates identifying their entitlement to the shares.

HMRC have confirmed that they will not, post-Brexit, seek to re-impose the 1.5 percent stamp duty reserve tax and stamp duty charges on issues and certain transfers of shares to providers of clearance and depositary services. These charges were ruled unlawful under European law but the UK domestic statute has not been amended to reflect this. Hence the need for this commitment from HMRC.

From 1 April 2018, the annual tax on enveloped dwellings (ATED) charges that apply in certain cases where residential property is held otherwise than by natural persons (i.e. individuals) will be increased by 3 percent in line with the September Consumer Prices Index. The details of the revised charges can be found here.

Following on from our previous article on the introduction of the new QIPs regime for very large companies, HMRC have published technical guidance and a tax information and impact note on the changes.

The OECD has released its Revenue Statistics 2017 report, which looks at tax revenue trends across the OECD’s member states.

On 21 November the OECD Council approved the contents of the 2017 Update to the OECD Model Tax Convention. The 2017 update will now be incorporated in a revised version of the OECD Model Tax Convention that will be published in the next few months.

The OECD’s ongoing base erosion and profit shifting (BEPS) program represents one of the most significant changes to the corporate tax playing field in recent years. The stated goal of the Action Plan is to tax profits where actual business activity is performed and where value is created. However, it’s not just a corporate tax issue - there are a number of aspects to BEPS that will require Global Mobility functions to be involved in the conversation too, including country by country reporting and the publication of tax strategies. In the second article in our series on Making Tax Digital, we look at the impact of the OECD BEPS project on global mobility.

Trinidad and Tobago have joined the Inclusive Framework on BEPS.

KPMG in the UK have issued a guide to help businesses maximise opportunities overseas, as the DIT reveal over £3 billion export support given to UK businesses in 2016/17.
 

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