UK: Revisions to double tax agreement with Slovenia
The UK's bilateral double tax treaty with Slovenia has been updated as a result of changes made under the OECD’s multilateral instrument (MLI) for inclusion into bilateral treaties of tax treaty related provisions from the action plan on base
See MoreUK: Statistics on Uptake of Patent Box Relief
From 1 April 2013 the UK phased in Patent Box legislation that allows companies to apply a lower rate of corporation tax to profits earned from patented inventions and other similar forms of intellectual property (IP). The relief was initially
See MoreUK: Date of autumn budget 2018 announced
The UK has announced that the autumn budget proposals will be announced on 29 October 2018. The date is earlier than in previous years and appears to have been moved forward to avoid coinciding with important talks on Brexit that take place in
See MoreIMF report looks at UK economy
On 17 September 2018 the IMF issued a report following discussions with the UK under Article IV of the IMF’s articles of agreement. Economic growth in the UK has decreased since the EU referendum in June 2016 owing to uncertainty in relation to
See MoreUK: Proposed Cut to National Insurance Contributions Scrapped
On 6 September 2018 the UK government announced that the planned abolition of Class 2 national insurance contributions would no longer be carried out in this parliament. The UK government had previously announced that Class 2 national insurance
See MoreUK: government issues guidance on VAT post Brexit
On 23 August 2018 the UK government issued guidance notes on implications of a so-called “no deal” Brexit, in other words the possibility that the UK leaves the European Union without an arrangement in place with the EU for the post-Brexit
See MoreUK: Statistics on tax evasion hotline
Statistics show that the UK tax authority HMRC received more than 40,000 telephone tip-offs in 2017/18 from members of the public in relation to people who may not have paid the correct tax. This followed the merging of two hotlines in relation to
See MoreUK: Think tank urges government to scrap entrepreneurs’ tax relief
In the autumn budget to be announced later in 2018 the UK government is expected to increase government spending in certain areas including health. This has given rise to speculation as to what tax increases might be required to provide the extra
See MoreUK Chancellor Considering Tax on Revenues of Online Retailers
In an interview published on 10 August 2018 the UK Chancellor of the Exchequer stated that large online retailers should be subject to a new tax on their revenues in the UK. This would aim to ensure fair taxation between high street retailers and
See MoreUK: Statistics on transfer pricing and diverted profits tax
On 1 August 2018 HMRC released a document showing the latest statistics relating to transfer pricing and the diverted profits tax (DPT). The transfer pricing rules and the DPT are seen by HMRC as an important part of the range of measures in place
See MoreIndia: CBDT signs first ever substantive revision to India-UK Bilateral APA
Recently, the Central Board of Direct Taxes (CBDT) signed the first ever substantive revision to an India-U.K. Bilateral advance pricing agreement (APA) due to certain changes in the way a particular transaction was being conducted. The changes were
See MoreUK: Provisions of updated tax treaty with Cyprus
The updated UK-Cyprus Double Taxation Agreement (DTA) signed on March 22 2018 aligns the provisions more closely with the OECD Model. Withholding tax The new treaty when in effect will provide for zero withholding tax on dividends unless they are
See MoreUK: Income tax has increased more for the highest earners
Data issued by the UK tax authority HMRC appears to show that the UK’s highest earners paid 9% more in income tax in 2017/18 than in 2016/17. The main reason for this increase appears to be limits introduced to the amount of tax deduction for
See MoreUK: Government signals that taxes could rise
The UK prime minister has indicated that extra funding to be provided to the health service will be partly raised by tax increases. No comment has been made on which taxes will rise except that this will be done in a fair and balanced way. Part of
See MoreUK: Tax Gap Statistics Published
A press release by the UK government on 15 June 2018 confirmed that the tax gap for 2016/17 was an estimated GBP 33 billion or 5.7%. The tax gap is the difference between the tax that the government considers should have been paid and the actual
See MoreUK published draft order to bring BEPS MLI into Effect
UK HM Treasury has laid before the House of Commons the draft Double Taxation Relief (Base Erosion and Profit Shifting) Order 2018. After the order is approved, the UK must then deposit its ratification instrument to enter into force in the
See MoreUK: Consultation discusses the use of cash in tax evasion and financial crime
On 13 March 2018 the government issued a call for evidence entitled “Cash and digital payments in the new economy”. HMRC notes that the use of cash can present problems with tax compliance because people dealing in cash may have problems
See MoreUK: Use of taxation or other charges to reduce plastic waste
The UK has set a goal to eradicate all avoidable plastic waste by 2042 and is examining how economic incentives can be used to encourage sustainable behaviour. A number of measures have already been taken to reduce waste such as the Landfill Tax;
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