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Other news in brief

Other news in brief

A round up of other news this week.

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Under the social investment tax relief scheme (SITR) an investor may defer capital gains arising from the disposal of any kind of asset if the proceeds are re-invested in SITR qualifying social enterprises. The qualifying investment must be acquired one year before or three years after the gain has arisen. The gain may be deferred until the disposal of the SITR investments. These rules previously had a ‘sunset clause’ and only applied to gains accrued during the period from 6 April 2014 to 5 April 2019. On 5 September 2019 regulations were made (click here) which will come into force on 4 November 2019 to retrospectively extend the qualifying period for another two years, to 5 April 2021. These changes will align the CGT reinvestment relief with the SITR income tax relief. HM Treasury is currently reviewing the future of the SITR scheme.

In April 2019 the First-tier Tribunal (FTT) concluded that cumulative compounding preference shares are Ordinary Share Capital (OSC) (Stephen Warshaw v HMRC TC/2017/08674). As a result, the company was the taxpayer’s ‘personal company’ and he qualified for Entrepreneurs’ Relief on the gain on disposal. In May 2019 HMRC updated their guidance on OSC (CTM 00514). This update includes clarification of HMRC's view following the Stephen Warshaw FTT decision. HMRC’s appeal of this case to the Upper Tribunal (UT) is now listed as UT/2019/0104 on the Upper Tribunal register. The date of the UT hearing is still to be confirmed.

CEOs name climate change the top risk to organisational growth in 2019, ahead of technological disruption, return to territorialism, cyber security and operational risk, according to the findings from KPMG’s 2019 Global CEO Outlook. This marks the first time in the five year history of the survey that climate change ranked top of the list.

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KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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