A round up of other news this week.
The Department for Business, Energy & Industrial Strategy has published a new consultation on Salaried workers and salary sacrifice schemes: changing the National Minimum Wage rules. The consultation seeks views on proposed changes to the National Minimum Wage (NMW) regulations which relate to salaried hours work, and where employers feel that the NMW rules are unduly onerous. It also seeks views on the practical operation of salary sacrifice schemes and their interaction with the NMW legislation. This consultation closes on 1 March 2019.
The Department for Business, Energy & Industrial Strategy has published new guidance on the steps employers should take to ensure their payslips comply with the Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 (SI 2018/147). These regulations come into force on 6 April 2019.
Following consultation and draft legislation included in Finance Bill 2018-19, HMRC have now published draft guidance (click here and here) on the new rules extending, from April 2019, the scope of non-resident capital gains tax (NRCGT) to include all UK immoveable property, including commercial property and other UK land. The change affects all non-UK resident property investors (whether individuals, companies or other entities), with only limited proposed exemptions. These rules also introduce the charge to NRCGT on disposals of entities which derive their value from UK property, along with targeted anti-forestalling rules which came into effect from 22 November 2017. In addition there are new rules providing two forms of CGT election, the transparency election or the exemption election, that Collective Investment Vehicles (CIVs) investing predominantly in UK land can make. See our previous Finance Bill articles entitled Changes for non-resident investors in UK property and Non-resident’s CGT on UK real estate in CIVs.
HMRC have published synthesised texts of the UK’s double tax treaties with the Slovak Republic and Lithuania. These synthesised texts reflect the changes made to those treaties by the Multilateral Instrument, now that both jurisdictions have deposited their respective instruments of ratification with the OECD.
The Chancellor of the Exchequer has sent a reply to the Office of Tax Simplification (OTS) in relation to its report on simplifying tax relief for fixed assets. The Chancellor agrees with the OTS that replacing the current capital allowances regime with an accounts-based depreciation is not a viable option for now. He also refers to the new Structures and Buildings allowance announced at the Budget and suggests HMRC and HM Treasury will continue to consider the scope for further capital allowances simplification but without any specific commitment.
With the latest corporate insolvency data signalling that the number of companies entering into administration is starting to rise after a prolonged period of benign activity, Blair Nimmo, head of Restructuring at KPMG in the UK comments on industries under the spotlight in 2019.
The guide to Directors' Remuneration 2018 has recently been published by KPMG detailing that the median pay-out under both annual bonus and long term incentive plans has increased for Chief Executives according to KPMG’s latest guide to executive directors’ remuneration in FTSE 350 companies. The guide includes an overview of salary, pension, bonus and long-term incentives as well as insights into diversity across the executive population, alongside other current issues affecting remuneration.
According to a new report from KPMG, the fourth industrial revolution (Industry 4.0) requires transformational change at a pace that many manufacturers are not matching. Philip Harris, Associate Partner and Industry 4.0 Country Leader at KPMG in the UK, stated: “It’s clear from many of the conversations we’re having with manufacturing organisations that few have developed or moved forward with Industry 4.0 strategies or plans, and some still don’t understand how it will affect their business.”