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In brief: Economic Affairs Committee; annual management charge; fuel rates; IHT trust charges; VAT refunds; people and firms

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House of Lords Economic Affairs Committee

The House of Lords Economic Affairs Committee has heard from several tax professionals and Margaret Hodge MP as part of its inquiry exploring whether a new approach is needed to taxing corporations in the modern global economy.

Annual management charge

The draft Offshore Funds (Tax) (Amendment No. 3) Regulations 2013 and the draft Authorised Investment Funds (Tax) (Amendment) Regulations 2013 form part of the government’s consultation on intended measures to remove the duty to withhold tax from ‘rebates’ of the annual management charge in most cases where these payments are made to investors not UK resident for tax purposes. An annual payment made to a participant in an offshore fund will not be a qualifying annual payment for the purposes of the ITA 2007 Part 15 Chapter 6 if certain conditions are met. The consultations will close on 25 June 2013. The changes relating to investors in offshore funds will be in force retrospectively from 6 April 2013, while the authorised investment funds changes will be in force 21 days after being made.

Company cars fuel rates

HMRC has published new advisory fuel rates for company cars, which apply from 1 June 2013. The rates are to be used only where employers either reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel.

IHT trust charges consultation

HMRC has opened for consultation proposed changes to the way inheritance tax is calculated on periodic and exit charges on trusts that hold or dispose of relevant property. It is also seeking seeks views on proposals to align payment and filing dates for these charges, and intends to examine the treatment of accumulated income. The consultation will close on 23 August 2013.

VAT refunds by manufacturers

HMRC is consulting until 31 August 2013 on the VAT treatment on refunds made by manufacturers. The department seeks views of manufacturers who pay rebates to consumers of their goods purchased through retailers the extent to which such payments are made, as well as to consider how UK law needs to change to accommodate these, what impact that may have and what administrative issues it may give rise to.

People and firms

London law firm Norton Rose and US-based Fulbright & Jaworski LLP have announced their completed combination – effective from 3 June – creating ‘a new, global legal practice’, Norton Rose Fulbright. The newly merged organisation has nearly 3,800 lawyers, and has offices in more than 50 cities across Europe, North America, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.
Specialist tax lawyer Simon Goldring has joined Trowers & Hamlin as the firm’s head of private wealth from RadcliffesLeBrasseur, where he was head of tax and private client.

Issue: 1172
Categories: News