A round up of other news this week.
The Taxes (Amendments) (EU Exit) (No. 2) Regulations 2019 were published on 8 April 2019. The purpose of this statutory instrument is to make changes to tax legislation in order to ensure that such legislation works in the same way as it does now if the UK leaves the European Union (EU) without a negotiated deal. The amendments remedy deficiencies to retained EU law in relation to intellectual property rights, international accounting standards and financial services and should reduce confusion and maintain stability in the UK tax system. Specifically with respect to patent box legislation, the amendments aim to ensure that certain intellectual property rights will continue to be ‘qualifying intellectual property rights’ where granted under UK law.
The new Entrepreneurs’ Relief rules in FA 2019 introduce, from 29 October 2018, economic conditions to the ‘personal company’ definition for the purposes of the relief. HMRC have published two new pages of guidance on these new rules: (i) Entrepreneur’s Relief: Shares or Securities: Personal Company - CG64050; and (ii) Entrepreneur’s Relief: Shares or Securities: Personal Company Definition: the economic interest requirement CG64051.
HMRC published two guidance documents on 6 April 2019 titled ‘Securities in respect of Corporation Tax’ and ‘Securities in respect of Construction Industry Scheme (CIS) deductions’. These detail the security that a company and certain officers associated with the company, or a contractor (as the case may be) are to give if there is a risk that Corporation Tax for which a company or certain officer may become liable to pay, or Construction Industry Scheme deductions which become due by contractors, are not paid. The guidelines also provide information on, amongst other matters: the notice of requirement to give security; when HMRC may issue a notice of requirement; the sending of a warning letter; how HMRC calculates the amount of security; the forms of security accepted; the time limits imposed; and how the security is given.
On 8 April, HMRC published guidance titled ‘Register a non-resident company for Corporation Tax’. The document discusses how a non-resident company ought to register for Corporation Tax if it has sold, gifted or transferred interests in UK immovable property or land, including: who should register; when to register; what information is needed in order to register; how to pay tax and what happens post-registration.
The latest BRC – KPMG Retail Sales Monitor has been published which covers the five weeks to 30 March 2019. Sue Richardson, Retail Director KPMG in the UK highlighted how March marked a truly disappointing end to the first quarter of 2019 for retailers, total sales fell by 0.5 percent compared to the same month last year, but no further clarity around Brexit came to light, and shoppers continue to waver.
KPMG has completed its third tranche of its Group Insure solution, helping two pension schemes (of £24 million and £9 million) secure a total of £33 million of liabilities in December 2018.
The 2019 Global Tax Disputes Benchmarking survey takes an in-depth look at the issues faced by those in charge of managing their company’s tax disputes, and the processes, practices, and resources they have in place to meet these challenges. To take part in our survey please Click here.
And finally… Tax Matters Digest will be taking a break next week for the Easter bank holidays. We’ll return on 29 April as usual.