A round up of other news this week.
The Court of Appeal has dismissed the taxpayer’s appeal in GDF Suez Teeside Limited v HMRC, which considered a disclosed arrangement involving the transfer of loan relationship assets in exchange for the issue of shares. The taxpayer had lost at the tribunals and was required to recognise a taxable profit equal to the fair value of the transferred assets because this ‘fairly represents’ the profit from the transfers of loan relationship assets. The ‘fairly represents’ wording in the loan relationships legislation ceased to apply for periods beginning on or after 1 January 2016, in part because HMRC are comfortable that the more clearly articulated targeted anti-avoidance rule within the loan relationships legislation is sufficient to counter the type of arrangement seen in this case. However, the decision may still be relevant to open enquiries for earlier periods and if you would like further information on the implications please speak to your usual contact.
HMRC have published the ‘synthesised’ text of the Multilateral Instrument (MLI) and the existing double tax treaty with Serbia and Slovenia. This appears to be the first tranche where HMRC is updating existing tax treaties to reflect the impact of the MLI. However, the extent to which taxpayers may rely on these ‘synthesised’ texts is currently unclear.
As a part of the ongoing ‘Business Lifecycle Review‘, the OTS has now published a call for evidence which includes a short online survey. The OTS is seeking to gather views on the impact of tax on businesses, with a focus mainly on smaller businesses, including self-employed individuals. Responses have been requested by 7 December 2018. The OTS has confirmed that it expects to publish its report in spring of 2019.
The UK remains Europe’s prime investment destination for Venture Capital, according to latest research by KPMG Enterprise.
Yael Selfin commented on the recently published GPD results, stating that despite the headline figure of strong growth for the three months to August, these figures also show that the UK economy lost momentum in August, with growth coming to a halt after a very strong July.
The BRC-KPMG Retail Sales Monitor was made available this week detailing, in September, UK retail sales decreased by 0.2 percent on a like-for-like basis from September 2017, when they had increased 1.9 percent from the preceding year.
© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.