SI 2020/332 – The Taxes (Amendments) (EU Exit) Regulations 2020

Released 24 March 2020

SI 2020/332 amends FA 2000, Sch. 22 (tonnage tax) and ITA 2007, s. 56 (personal reliefs) to maintain their effect after the IP completion day.

The Taxes (Amendments) (EU Exit) Regulations 2020 amend the Finance Act 2000, Sch. 22 (tonnage tax) and the Income Tax Act 2007, s. 56(3)(za) (personal reliefs: residence of claimants) to maintain the effect of these provisions after the withdrawal of the United Kingdom from the European Union.

The amendments to FA 2000, Sch. 22 maintain the effect of the tonnage tax regime by ensuring that the legislation continues to apply to the shipping registers currently within the scope of the regime on the withdrawal of the United Kingdom from the European Union. The amendments ensure that the tonnage tax regime will continue to apply to qualifying ships registered in the United Kingdom, Gibraltar and European Union member States after IP completion day. It also maintains the existing effect of FA 2000, Sch. 22, para. 49 with regards to the treatment of dividends or other distributions of overseas companies over which more than 50% of the voting power is held by companies resident in the UK, Gibraltar or a member State.

The amendment ITA 2007, s. 56(3)(za) maintains the effect of income tax legislation relating to the personal allowance, blind person’s allowance, marriage allowance and married couple’s allowance on withdrawal of the United Kingdom from the European Union (and accordingly, on the United Kingdom ceasing to be a member of the European Economic Area).

The regulations come into force on IP completion day (31 December 2020, as defined by EUWAA 2020, s. 39(1)).

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