A round up of other news this week.
The UK has signed a new protocol with Israel to update the double taxation convention which is currently in force. According to the Government this protocol is intended to facilitate investment by reducing tax rates on dividends between the UK and Israel, as well as allowing for the exchange of information. In addition, UK companies will benefit from reduced rates of Israeli tax on interest and no Israeli tax on royalties, while UK pension schemes will suffer no Israeli tax on payments of dividends and interest. The protocol will enter into force once both countries have completed all relevant procedures. You can find more details about the protocol here.
From 6 April 2019, non-savings and non-dividend income received by Welsh taxpayers will be subject to income tax at rates set by the National Assembly for Wales. The Welsh Government has confirmed that the basic, higher and additional rates of income tax that will apply to relevant income of Welsh taxpayers in 2019/20 will be the same as those that will apply to taxpayers in England and Northern Ireland. In summary, a ‘Welsh taxpayer’ is a UK resident individual whose main residence is located in Wales or, in certain circumstances, who spends longer in Wales than in any other part of the UK during the relevant tax year. More information on income tax in Wales is available from HMRC here.
Tech sector growth is the weakest for three years as uncertainty begins to bite, according to KPMG in the UK’s latest UK tech monitor.
Patrick Imbach, Head of KPMG in the UK’s innovative startup practice comments on the findings from the latest Venture Pulse Q4 2018 report.