A round up of other news this week.
There have been changes made to Trust Registration guidance in order to comply with money laundering regulations. The updates include an outline of what information must be kept for express trusts and when records should be deleted (in compliance with General Data Protection Regulation (GDPR)). Information has been added about the penalties that apply if registration deadlines are not met. With regard to changes to existing Trust Registration Service (TRS) information, there is confirmation that changes to the lead trustee's name and address should be notified to HMRC by letter. But other changes need to await the updated TRS facility which may not be made available to trustees/agents until August 2019.
HMRC have updated their guidance on who has to pay the higher Stamp Duty Land Tax rates, the property it applies to and claiming a refund.
HMRC have published an updated version of their guidance published on tax reliefs for national heritage property, which includes Inheritance Tax exemptions and Capital Gains Tax reliefs.
The EC has issued letters of formal notice to the UK Government, requesting information in respect of two specific tax reliefs, on the grounds that both reliefs contravene EU law on free movement of capital. UK rules provide specific tax relief for lenders where a ‘qualifying loan’ to a UK trader has become irrecoverable (TCGA 1992 s253). These rules currently differentiate between the tax treatment of irrecoverable loans to UK resident and to non-UK resident borrowers. Share loss relief (CTA 2010, s68) provides income tax relief for losses on disposals of shares. Currently, only shares in companies which carry out their business activities wholly or mainly in the UK can qualify for this relief. The EC argues that this rule puts taxpayers who invest in qualifying shares of companies which carry out their business in other EU Member States at a disadvantage. The UK has two months to respond to the EC's request.
The Wales Act 2014 (Commencement No 2) Order 2018 was made on 23 July 2018. This sets the dates from which the Wales Act 2014 makes certain changes to the Scotland Act 1998, the Government of Wales Act 2006 and the Income Tax Act 2017 in connection with the devolution of income tax powers to the National Assembly for Wales. From April 2019, the National Assembly for Wales will have the power to vary the basic, higher and additional rates of income tax for Welsh taxpayers.
The UK’s fintech industry attracted over $16 billion investment in the first half of 2018 making the UK the world leader, accounted for over half of the total fintech investment into Europe and attracted more money than the US. This was in large part due to Vantiv’s acquisition of WorldPay for $12.9 billion.