Tax consultations: October 2019

Published by Croner-i

24 Sep 2019

This month’s HMRC and Treasury consultations focus on disclosure of certain cross-border arrangements that could be used to avoid or evade tax, and amendments to new provisions extending taxation of gains accruing to non-UK residents to include disposals of interests in non-residential UK property

Cross-border tax disclosure rules

Issued: 22 Jul 2019
Closing date: 11 Oct 2019

The government is consulting on new rules required to implement an EU directive that will enforce the disclosure to HMRC of certain cross-border arrangements that could be used to avoid or evade tax. From 1 July 2020 an EU directive known as DAC 6 will require promoters, intermediaries and taxpayers to report details of certain types of cross-border arrangements to HMRC, where those arrangements meet certain hallmarks or criteria, including confidentiality, remuneration arrangements, the use standardised documentation, loss buying, converting income to capital, the transfer of assets, obscuring beneficial ownership, and hard to value intangibles.

Property rich collective investment vehicles

Issued: 17 Sep 2019
Closing date: 25 Oct 2019

The government is consulting on draft amendments to legislation about the taxation of UK property rich collective investment vehicles and their investors. Schedule 1 to Finance Act 2019 introduced new provisions extending taxation of gains accruing to non-UK residents to include gains on disposals of interests in non-residential UK property. These regulations amend part of those rules specifically concerning ‘UK property rich’ collective investment vehicles (CIVs) and their investors. The amendments follow representations made by stakeholders after the rules were introduced. They ensure the legislation will work as had been intended. The changes mainly affect non-UK residents, but there are also impacts on CIVs and investors resident in the UK.