A round up of other news this week.
HMRC have published revised guidance, which will apply in the event of a no-deal Brexit, for the future treatment of payments between associated companies in the UK and other Member States, which are currently exempt from deduction of tax under the Interest and Royalties Directive. This appears to confirm that, for the moment, following Brexit, domestic legislation will continue to apply for payments from UK companies to EU associates for interest and royalties, as the domestic law legislation remains unchanged. It remains to be seen whether this will change going forward.
The Scottish Government is consulting until 6 June 2019 on a policy framework for devolved taxes. This is intended to improve the process of planning, managing and implementing fully devolved taxes in Scotland. The current fully devolved taxes are Land and Buildings Transaction Tax and Scottish Landfill Tax. Air Passenger Duty and Aggregates Levy are expected to be devolved in the future.
Three in five UK manufacturers say Brexit has impacted investment into their business according to a KPMG survey, with automotive respondents reporting the highest hardest blow, at 78 per cent.
The role of tax as an ultimate source of funding is just one aspect of the complex and multi-layered relationship between tax and infrastructure. Today, as trust – and being trusted – are of growing importance to the sector, responsible tax is rising up the agenda and becoming part of the industry’s licence to operate. Read more here.