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.
Tax news from December 2020
Latest news on the UK tax system, brought to you by the ICAEW Tax Faculty.
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.
23 December 2020: HM Treasury confirms that repayments of business rates relief claimed in light of the potential impact of the coronavirus pandemic are tax deductible.
23 December: When the Brexit transition period comes to an end on 31 December, so will the application to the UK of the EU parent-subsidiary and interest and royalties directives. This means that certain payments to and from UK companies will become subject to withholding taxes.
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.
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.
18 December 2020: The Office of Tax Simplification is examining whether HMRC can better use third-party data to pre-populate tax returns and reduce data input by taxpayers and agents.
18 December 2020: Employees that joined a cycle-to-work scheme on or before 20 December 2020 will not be liable for income tax benefit-in-kind charge, reveals Treasury.
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.
17 December 2020: In a surprise move, the Chancellor has announced that the Coronavirus Job Retention Scheme is to be further extended until 30 April 2021.