A round up of other news this week.
Finance Bill 2018 passed its Second Reading on 11 December 2017. MPs will now consider the Bill at a Committee of the Whole House, due to begin on 18 December 2017.
The Risk Transformation (Tax) Regulations 2017 have been enacted. The regulations implement a new tax framework for qualifying transformer vehicles that issue insurance linked securities (ILS), designed to attract these businesses to the UK. The Risk Transformation Regulations 2017 dealing with the UK regulatory regime for ILS were enacted on 5 December 2017.
The OECD has released a consultation on new rules that would require the disclosure of certain arrangements designed to circumvent reporting under the Common Reporting Standard or to disguise beneficial ownership through non-transparent structures. Comments are requested by 15 January 2017.
The Bahamas and Zambia have joined the Inclusive Framework on BEPS.
The EU has released new guidelines on withholding tax intended to help Member States reduce costs and simplify procedures for cross-border investors in the EU.
The Upper Tribunal has dismissed HMRC’s appeal in the English Holdings (BVI) Limited case, agreeing with the First-tier Tribunal that a non-UK resident company was entitled to claim income tax relief for the trading loss arising in its UK permanent establishment against its UK letting income, even though a trading profit would have been chargeable to corporation tax rather than income tax. It remains to be seen whether HMRC will appeal this decision further.
The Government has confirmed that for the first year of operation of the Trust Registration Service (the online register on which trustees are required to record details of beneficial ownership) they will not impose penalties on trustees of existing trusts so long as they have registered the trust by 5 March 2018 (the deadline was previously 31 January 2018). It is noted that for new trusts (i.e. those which have incurred a liability to income tax or capital gains tax for the first time in the tax year 2016 to 2017) there is no change to the 5 January 2018 deadline (which has previously been extended from 5 October 2017 to 5 December 2017, and then to 5 January 2018). This should give HMRC sufficient time to issue UTRs to these trusts so that their trust returns can be submitted by the 31 January 2018 deadline.
The Welsh Government has announced changes to the rates and bands for land transaction tax (LTT). While no specific LTT relief for first time buyers has been announced, the starting threshold for land transaction tax residential rates will be set at £180,000 from 1 April 2018, £55,000 higher than the starting threshold for SDLT.
HMRC have published the results of their post-implementation review of Real Time Information.
The next KPMG Employers’ Club webinar will be taking place on Tuesday 19 December at 10.30am (GMT). The webinar will cover the Government’s proposed plans to extend the public sector off-payroll worker rules to the private sector. To register, click here.
KPMG’s Ferdia Byrne considers the publication of new accounting standards and their impact on insurers.
KPMG’s Head of Brexit Karen Briggs comments on the latest in Brexit negotiations.
And finally… Tax Matters Digest will be taking its usual break over the Christmas period. We’ll be back on 5 January 2018 as usual.