A round up of other news this week.
The Financial Secretary to the Treasury has announced that, in accordance with the Budget timetable and tax policy making process published in 2017, the Government will publish draft clauses for Finance Bill 2019-20 on Thursday 11 July 2019, with other relevant supporting documents. This is now commonly referred to as ‘Legislation Day’ or ‘L Day’. The usual process is for the draft legislation to be open for consultation over the summer with the final contents of Finance Bill 2019-20 subject to confirmation at Budget 2019.
In continued effort to support its tax transparency initiatives, on 27 June 2019, the OECD released its version of the Mandatory Disclosure Rules (MDR) XML Schema and User Guide. These will support MDR exchanges by Financial Institutions with their respective tax authorities, to facilitate the structured collection and exchange of information on Common Reporting Standard (CRS) Avoidance Arrangements and Opaque Offshore Structures. Separately, the OECD has released updated XML schemas and guidance to support the exchange of tax information under the CRS, on Country-by-Country (CbC) Reporting and in relation to tax rulings (ETR). These updates reflect the experiences gained from first exchanges, aim at increasing the user-friendliness and contain the latest technical developments for use from January 2021.
HMRC are seeking views on draft regulations to restrict the National Insurance employment allowance (currently £3,000) to employers with a Class 1 secondary National Insurance liability of less than £100,000 in the preceding tax year. This reform, announced at the 2018 Budget, would be effective from 6 April 2020. The consultation is open until 11:45pm on 20 August 2019.
Finance (No.2) Act 2015 introduced new ‘regime anti-avoidance rules’ into the loan relationships and derivative contracts regimes. The rules apply to arrangements, the main purpose, or a main purpose, of which is to enable a company to obtain a loan-related or a derivative-related tax advantage. HMRC have now published guidance on these anti-avoidance rules in the Corporate Finance manual at CFM39500.
Investment in innovation and technological change can drive a step change in trade and an acceleration of trade growth in a post-Brexit Britain, in contrast to the impact expected by the UK’s departure from the European Union, according to new KPMG UK research.
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