Government defers plan to make large businesses notify uncertain tax positions
17 November 2020: A written ministerial statement confirms that the requirement for large businesses to notify HMRC when they adopt an uncertain tax position has been delayed until April 2022.
The statement made on 12 November by Jesse Norman, Financial Secretary to the Treasury, confirms that the deferral is to allow more time to get the policy and legislation right following the recent consultation and to enable further engagement with stakeholders and provide affected businesses with more time to prepare for the change.
ICAEW’s Tax Faculty welcomes the deferral. One of the largest concerns raised during the consultation process (highlighted in ICAEW Representation 56/20) was that the definition of a tax uncertainty suggested in the consultation was very subjective.
ICAEW believes that that the proposals as originally drafted would likely place an unnecessary compliance burden on the ordinarily compliant.
It is very encouraging that HMRC has listened to the consultation responses and is seeking to address the concerns raised. The Tax Faculty will continue to work closely with HMRC as this policy develops.