Today we had the Chancellor’s first Spring Statement since the decision to move the Budget to the Autumn. The Chancellor took pains to manage expectations downwards but, while there were no major tax announcements for the new financial year, there were some interesting consultations launched and updates on earlier consultations. Entrepreneurs’ Relief (ER) ER provides … Continue reading The Spring Statement: What’s new?
HM Treasury has published a position paper in respect of taxing the digital economy (available here) following the Chancellor’s Autumn Budget. The paper proposes that multinational groups’ profits should be taxed where value is generated. For example, a social media business generates value through users worldwide, but is only taxed where it is tax resident … Continue reading Taxing the Digital Economy: first steps by the UK
Draft legislation published on Monday goes some way to address concerns raised during the consultation process. Importantly, the provisions have been limited to circumstances where there are abusive tax arrangements which are defeated. Whether there are abusive tax arrangements is determined in accordance with the familiar GAAR criteria, under FA 2013. For some reason the … Continue reading Penalties for tax avoidance enablers – Finance Bill provisions
For companies now subject to investigation from an EU State Aid perspective, the potential for repayment obligations are likely to be an unexpected outcome from what many may have regarded as mainstream tax structuring. An outline of the current position is available here.
A common method of effecting corporate takeovers for many years has been by way of a target company entering into a scheme of arrangement with its shareholders (rather than by way of a standard takeover offer made by the buyer). This method is used for a number of reasons, including potentially shorter timescales and a … Continue reading Stamping out cancellation schemes
The Chancellor today announced three key measures to help the UK tackle Base Erosion and Profit Shifting (“BEPS”). The measures signal the first concrete BEPS related measures intended to be adopted into domestic legislation. The measures are part of the UK Government’s efforts to strengthen anti-avoidance measures and in the process promote fairness in tax … Continue reading BEPS takes centre stage as Chancellor ushers in special ‘Tech Tax’
It might be helpful if I added some context to my avoidance and advance payments outline. According to the impact summary HMRC expect to issue payment notices to around 43,000 taxpayers. Over £5 billion of tax is anticipated to be paid. It is then expected that a range of different legal challenges will arise, including … Continue reading Tax avoidance and accelerated payments – some context
Notwithstanding consultation criticisms it was confirmed today that the Government will press ahead with plans to reduce tax avoidance benefits. It is proposed that Finance Act 2014 will provide HMRC with powers to require a taxpayer to pay tax upfront where: • the taxpayer has entered into arrangements to obtain a tax advantage (whether or … Continue reading More on tax avoidance
Among the draft Finance Bill clauses recently published were amendments to the UK double tax relief rules (“DTR Rules”) which are likely to be of interest to many UK based corporates with overseas income streams. The general aim of the DTR Rules is to allow relief for foreign tax against UK tax on the same … Continue reading Changes to double taxation relief rules to counter avoidance
As widely expected, today’s Autumn Statement confirmed that anti-avoidance measures are to be introduced to counteract the use of corporate partners to reduce the income tax liabilities of individuals in partnerships. Very broadly, the Government’s concern is that individual partners have been reducing the amounts on which they are taxed at up to 45% (and … Continue reading Mixed member partnerships – targeting profit and loss allocation abuse