On 12 June, a Public Bill Committee agreed amendments to clauses 166 and 167 to correct an error in relation to fines and penalties applying to gambling duties. Also on 10 and 12 June, the committee passed over 120 clauses and schedules without amendment. As the Bill is the first Finance Bill of the 2014/15 parliamentary session, its title has changed from Finance (No. 2) Bill 2013/14 to Finance Bill 2014/15.
Child benefits and child tax credits
The Child Benefit (General) and Tax Credits (Residence) (Amendment) Regulations, SI 2014/1511, come into effect on 1 July 2014. They introduce a three-month residence qualification which people who have recently arrived in the UK must satisfy before they are able to access child benefit or child tax credits, subject to certain specified exceptions.
FATCA
The International Tax Compliance (United States of America) Regulations, SI 2014/1506, come into effect on 30 June 2014. They replace the original 2013 regulations and reflect the revised FATCA reporting timelines and relevant provisions introduced in US Treasury Regulations and other equivalent intergovernmental agreements. The new regulations also provide for daily penalties for breaches of obligations.
Tax treaties
The following draft double taxation orders have been published:
The Double Taxation Relief and International Tax Enforcement (Belgium) Order will bring into effect the second protocol, signed on 13 March 2014, to the UK/Belgium 1987 Double Taxation Convention. The protocol makes clear that amendments made by the 2010 protocol apply to regional and community taxes in Belgium, as well as to federal taxes;
The Double Taxation Relief and International Tax Enforcement (Zambia) Order 2014 will bring into effect the new UK/Zambia Double Taxation Convention, signed on 4 February 2014;
The Double Taxation Relief and International Tax Enforcement (Iceland) Order will bring into effect the new UK/Iceland Double Taxation Convention and protocol, signed on 17 December 2013;
The Double Taxation Relief (Federal Republic of Germany) Order will bring into effect the arrangements set out in the protocol, signed on 17 March 2014, to the existing UK/Germany Double Taxation Convention. The protocol applies the new Article 7 (business profits) of the OECD Model Double Taxation Convention and deals with diplomatic and consular employees; and
The Double Taxation Relief and International Tax Enforcement (Japan) Order will bring into effect the arrangements set out in a protocol, signed on 17 December 2013, amending the UK/Japan Double Taxation Convention.
CT refunds
HMRC paid £4.6bn in corporation tax refunds to around 286,000 companies in the year to 31 March 2013, according to figures obtained by accountancy firm UHY Hacker Young. The firm’s head of tax, Roy Maugham, said the figures highlighted the importance for businesses of reviewing corporation tax liabilities, with repayments sometimes taking between 12 and 24 months to organise, although two to three months is typical. The number of approved claims for refunds for 2012/13 was down 17% on the 346,000 in 2011/12.
HMRC guidance
New HMRC guidance is available from HMRC’s website, including:
updates to HMRC’s toolkits on capital versus revenue expenditure and business profits;
Pension News for the week ended 13 June, including an update on the FCA’s work on the retirement income market, the improvement to the ability of FTSE 350 companies to support their defined benefit pension obligations, and the pension insurance buy-in with the trustee of the Total UK Pension Plan by the Pension Insurance Corporation;
updated notes to VAT431C and VAT431NB for claiming VAT on converting an existing dwelling or constructing a new building as a DIY housebuilder;
Customs Information paper (14) 42: change of contact details for the customs quota team;
JCCC CIP (14) 44: the CPC for exported goods will be 10 00 052 and the ATA Carnet Unit has moved from Salford Quays to Ralli Quays;
JCCC CIP (14) 45: UK prohibition on the import and export of khat;
JCCC CIP (14) 46: claims for repayment of secured duty on critical quota;
Notice 179E on biofuels and other substitutes: this notice cancels and replaces the August 2011 version; and
Notices CCL 1/3 CCL1/4 and 1/6 on reliefs and special treatments for taxable commodities, electricity from renewable sources and the carbon price floor.
On 12 June, a Public Bill Committee agreed amendments to clauses 166 and 167 to correct an error in relation to fines and penalties applying to gambling duties. Also on 10 and 12 June, the committee passed over 120 clauses and schedules without amendment. As the Bill is the first Finance Bill of the 2014/15 parliamentary session, its title has changed from Finance (No. 2) Bill 2013/14 to Finance Bill 2014/15.
Child benefits and child tax credits
The Child Benefit (General) and Tax Credits (Residence) (Amendment) Regulations, SI 2014/1511, come into effect on 1 July 2014. They introduce a three-month residence qualification which people who have recently arrived in the UK must satisfy before they are able to access child benefit or child tax credits, subject to certain specified exceptions.
FATCA
The International Tax Compliance (United States of America) Regulations, SI 2014/1506, come into effect on 30 June 2014. They replace the original 2013 regulations and reflect the revised FATCA reporting timelines and relevant provisions introduced in US Treasury Regulations and other equivalent intergovernmental agreements. The new regulations also provide for daily penalties for breaches of obligations.
Tax treaties
The following draft double taxation orders have been published:
The Double Taxation Relief and International Tax Enforcement (Belgium) Order will bring into effect the second protocol, signed on 13 March 2014, to the UK/Belgium 1987 Double Taxation Convention. The protocol makes clear that amendments made by the 2010 protocol apply to regional and community taxes in Belgium, as well as to federal taxes;
The Double Taxation Relief and International Tax Enforcement (Zambia) Order 2014 will bring into effect the new UK/Zambia Double Taxation Convention, signed on 4 February 2014;
The Double Taxation Relief and International Tax Enforcement (Iceland) Order will bring into effect the new UK/Iceland Double Taxation Convention and protocol, signed on 17 December 2013;
The Double Taxation Relief (Federal Republic of Germany) Order will bring into effect the arrangements set out in the protocol, signed on 17 March 2014, to the existing UK/Germany Double Taxation Convention. The protocol applies the new Article 7 (business profits) of the OECD Model Double Taxation Convention and deals with diplomatic and consular employees; and
The Double Taxation Relief and International Tax Enforcement (Japan) Order will bring into effect the arrangements set out in a protocol, signed on 17 December 2013, amending the UK/Japan Double Taxation Convention.
CT refunds
HMRC paid £4.6bn in corporation tax refunds to around 286,000 companies in the year to 31 March 2013, according to figures obtained by accountancy firm UHY Hacker Young. The firm’s head of tax, Roy Maugham, said the figures highlighted the importance for businesses of reviewing corporation tax liabilities, with repayments sometimes taking between 12 and 24 months to organise, although two to three months is typical. The number of approved claims for refunds for 2012/13 was down 17% on the 346,000 in 2011/12.
HMRC guidance
New HMRC guidance is available from HMRC’s website, including:
updates to HMRC’s toolkits on capital versus revenue expenditure and business profits;
Pension News for the week ended 13 June, including an update on the FCA’s work on the retirement income market, the improvement to the ability of FTSE 350 companies to support their defined benefit pension obligations, and the pension insurance buy-in with the trustee of the Total UK Pension Plan by the Pension Insurance Corporation;
updated notes to VAT431C and VAT431NB for claiming VAT on converting an existing dwelling or constructing a new building as a DIY housebuilder;
Customs Information paper (14) 42: change of contact details for the customs quota team;
JCCC CIP (14) 44: the CPC for exported goods will be 10 00 052 and the ATA Carnet Unit has moved from Salford Quays to Ralli Quays;
JCCC CIP (14) 45: UK prohibition on the import and export of khat;
JCCC CIP (14) 46: claims for repayment of secured duty on critical quota;
Notice 179E on biofuels and other substitutes: this notice cancels and replaces the August 2011 version; and
Notices CCL 1/3 CCL1/4 and 1/6 on reliefs and special treatments for taxable commodities, electricity from renewable sources and the carbon price floor.
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