UK: Changes to the Research and Development Tax Credit for SMEs
On 12 November 2020 the UK government published draft legislation aiming to prevent the abuse of research and development (R&D) tax relief by small and medium companies (SMEs). This follows extensive consultation on the issue. The SME
See MoreUK: Further draft legislation published for Finance Bill 2021
On 12 November 2020 the UK government published for consultation further draft legislation in relation to the Finance Bill 2021. Comments are invited by 7 January 2020. This follows the publication of draft legislation on 21 July 2020 in
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UK: Updated Statistics on Transfer Pricing and Diverted Profits Tax
On 12 November 2020 HMRC published updated statistics relating to transfer pricing and the diverted profits tax for 2019/20 (the year to 31 March 2020). In 2019/20 a total of 125 transfer pricing enquiries were settled, with an average
See MoreUK: Consultation on Making Tax Digital for Corporation Tax
On 12 November 2020 HMRC published a consultation document concerning Making Tax Digital (MTD) for corporation tax (CT). The closing date for comments from interested parties is 5 March 2021. Under MTD for CT all entities within the charge
See MoreIMF: Concluding Statement Following a Review of the UK Economy
On 29 October 2020 the IMF published a report on the UK economy following the conclusion of the 2020 Article IV consultations. In the UK the pandemic has been more severe than in most other European countries, impacting an economy already
See MoreOECD: Economic Survey of UK
On 14 October 2020 the OECD published on its website its economic survey of the UK. The outlook for the UK is uncertain with the combination of Brexit and the COVID-19 crisis. Since July 2020 the UK has begun a new phase of support for business
See MoreUK: Statistics on Research and Development Tax Relief
On 30 September 2020 HMRC published the statistics for claims for research and development (R&D) tax relief in the UK. By monitoring tax relief schemes HMRC can examine the level of use of the schemes and gain some insight into the
See MoreUK: Statistics on Patent Box Tax Relief
The patent box legislation allows companies in the UK to apply a lower corporation tax rate to profits earned from qualifying patented inventions and specified equivalent types of intellectual property. The relief was first introduced from 1 April
See MoreUK: Winter Economy Plan Released
On 24 September 2020 the Chancellor announced measures contained in the UK government’s Winter Economy Plan. The measures include a new Job Support Scheme, extensions to the Self-Employment Income Support Scheme and the loan schemes, deferrals of
See MoreUK: Autumn Budget postponed
The UK budget that would normally be announced in the autumn will not take place this year. A government spending review will be carried out to establish the level of spending by government departments, but no long-term tax plans will be
See MoreUK: VAT on Early Termination Fees and Compensation Payments
On 2 September 2020 the UK issued Revenue and Customs Brief 12 (2020) in relation to VAT on early termination fees and compensation payments. The previous guidance was that payments charged to withdraw from agreements to receive goods or
See MoreUK: Capital Gains Tax Statistics
On 13 August 2020 HMRC released updated statistics on capital gains tax collection. UK capital gains tax (CGT) is charged on gains realised on the disposal of assets. Types of disposal can include sales, gifts, and exchanges but the death of an
See MoreUK: Statistics on creative industries tax relief
HMRC published updated statistics for creative industries tax relief for 2019/20 on 13 August 2020, showing that GBP 1.11 billion was paid out in tax relief for creative industries in 2019/20. Almost half the relief given related to film tax relief
See MoreUK: Consultation on Extension of R&D Tax Credits to Data and Cloud Computing
On 21 July 2020 the UK government launched a consultation on extending research and development (R&D) tax credits to costs relating to data and cloud computing. Comments are invited by 13 October 2020. R&D tax credits support innovative
See MoreUK: Further Extension of Making Tax Digital
On 21 July 2020 the UK government outlined its plans for extending the digitalisation of tax returns, known as Making Tax Digital (MTD). The plans cover value added tax (VAT), income tax and corporation tax. The government considers that digital
See MoreUK: Strategy Document Outlines Future Development of Tax Administration
On 21 July 2020 the UK government issued a strategy document entitled Building a trusted, modern tax administration system in which it set out a ten-year strategy for a tax administration system that can offer support to taxpayers, increase
See MoreDAC6 Updates: Optional deferral of DAC6 reporting deadlines
On 24 June 2020, the European Council reached agreement on an optional 6-month postponement to the reporting deadlines for relevant taxpayers under EU Directive 2018/822 (DAC6), and a delay to the exchange of information under
See MoreUK: New Financial Institution Notice Introduced
Under legislation included in the Finance Bill 2020/21 a new Financial Institution Notice (FIN) is to be used by HMRC to require financial institutions to provide relevant details about a specific taxpayer. Unlike the previous procedure the new
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