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Tax news from December 2020

Latest news on the UK tax system, brought to you by the ICAEW Tax Faculty.

DAC 6 to be replaced by OECD rules for UK intermediaries from 2021

4 January 2021: HMRC has confirmed that the UK will no longer be applying DAC 6 in its entirety following conclusion of the Free Trade Agreement with the EU. Only arrangements that would have fallen within Category D of DAC 6 will now need to be reported, in line with the OECD’s mandatory disclosure rules.

Clarity over VAT on transactions spanning 31 December

30 December: HMRC has published guidance on the VAT treatment of transactions that are ongoing and goods that are in transit between Great Britain and the EU when the Brexit transition period ends on 31 December 2020.

National insurance thresholds for 2020/21

23 December 2020: Clarity emerges concerning the re-rating of national insurance contributions as ministerial statement confirms that September's consumer price index will be used as the basis for limits and thresholds for 2021/22.

Tax news in brief

Highlights from the broader tax news week ending 22 December, which includes: guidance from HMRC on disguised remuneration schemes that avoid tax by selling business revenues to trusts, changes to land transaction tax and Royal Assent of the Taxation (Post-transition Period) Bill 2020.

Budget 2021 date confirmed

17 December 2020: Rishi Sunak has confirmed that Budget 2021 will take place on 3 March and will provide further information on COVID-19 support packages.

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