HMRC provides more information on planned changes to the R&D tax relief structure.
Following the previous consultation on ways to strengthen the UK’s R&D regimes to ensure the incentives are internationally competitive, more information on the proposed changes to the R&D regimes were released on Tax Day 2. Our experts go through every issue, including the limits on relief for international expenditures that will take effect in April 2023. It’s critical that all claimants understand how these changes will affect their claims in the future, especially in light of the plan for early notice of R&D claims and other anti-abuse procedures.
Consultation on Mandatory Disclosure Rules – The UK is consulting on legislation to replace DAC6.
As previously stated, the UK government has begun a consultation on the adoption of laws to replace DAC6, which is expected to take effect in Summer 2022. The proposed regulations are based on the OECD model norms. It is recommended that agreements entered into after October 29, 2014, the day the OECD’s Common Reporting Standard (CRS) was released, be required to be disclosed .
Obtaining more time to file corporate tax returns
Companies having genuine Covid-related reasons for not being able to file on time can request a brief extension (typically one month) to their normal corporate tax return due date of 31 December 2021, as they did last year.
R&D expenditure was not subsidised, according to a first-tier tribunal case.
Quinn London Ltd V HMRC, a case recently issued by the First Tier Tribunal (FTT), provides much-needed clarification on the applicability of the subsidised expenditure rules for SME R&D claims. Rachel Moore is a member of our research and development team. Updates on tax treaties
Register for the Passport Scheme under the Double Taxation Treaty
HMRC has made 130 additions, two deletions, and four revisions to the Double Taxation Treaty Passport Scheme record.
“Private equity tax considerations,” according to the PE blog.
Private equity has had a very active year. Read International Tax Partner Rachel Palmer’s newest essay on how an active market emphasises the significance of knowing transactional tax consequences.
Exempt payouts on the purchase of own shares are covered under HMRC’s advice.
HMRC has issued guidelines on clearing applications and how to apply for advance confirmation of an exempt distribution when a corporation buys its own stock.
Offshore reporting funds that have been approved
HMRC has revised its list of authorised offshore reporting funds to cover funds that have joined the Reporting Fund Regime between now and December 6, 2021.
Why is tax such an essential part of the TCFD?
The TCFD (Task Force on Climate-Related Financial Disclosures) can be adopted by any organisation, and premium listed firms in the UK will be required to disclose on a ‘comply-or-explain’ basis from January 1, 2021 – but what impact does the TCFD have on tax?
The United Kingdom is consulting on laws to replace DAC6.
The UK government has started a consultation on the adoption of legislation to replace DAC6 as previously reported.
Commissioner Gentiloni was questioned on the EU’s tax strategy in 2022.
Members of the European Parliament’s tax subcommittee recently grilled Commissioner Gentiloni on the Commission’s tax policy goals for the coming year, as well as potential roadblocks. MEPs also inquired about the financial transaction tax, tax competition, a potential minimum tax rate for royalties, dividends, and interest, and how to strike a balance between the need for aggressive tax policy and the need to avoid stifling growth.
Who is responsible for paying the wealth tax?
Residents of India, including individuals, HUFs, and businesses, are subject to wealth tax. The residence status of the party in question is the deciding element for the imposition of wealth tax. As discussed in the next paragraphs, resident Indians are liable to a wealth tax on their assets (global assets). NRIs, on the other hand, are legally obligated to pay wealth tax if they possess assets in India.