The government has tabled a new clause and schedule, and 12 supporting amendments giving effect to the changes announced in September, allowing specified death benefits to pass tax-free to nominated beneficiaries where the member of a defined-contribution scheme dies before the age of 75. The Public Bill Committee is to debate the amendments on 10 November 2014.
Child trust funds to junior ISAs draft regulations
Following consultation, the government has announced its intention to allow the transfer of savings from a child trust fund to a junior ISA with effect from April 2015. HMRC is now consulting until 2 January 2015 on the draft regulations, The Child Trust Funds (Amendment) Regulations, SI 2015/Draft, which set out the detailed rules for such transfers.
Social investment tax relief guidance
The Cabinet Office has issued guidance for prospective ‘social impact contractors’ on the accreditation scheme governing eligibility for the new social investment tax relief introduced in April 2014. Although HMRC is responsible for administering the tax relief scheme overall, the Cabinet Office will manage accreditation.
Gaming duty regulations
The General Betting, Pool Betting and Remote Gaming Duties (Returns, Payments, Information and Records) Regulations, SI 2014/2912, have been laid before the House of Commons. These regulations come into force on 1 December 2014 to prescribe the form and timing of returns and payments to be made 30 days from the end of each accounting period, and require betting exchange operators to provide profit statements which enable bookmakers to make accurate returns to HMRC. The regulations also supplement the Registration, Records and Agents Regulations, which came into force on 18 September, by allowing HMRC to impose additional record-keeping conditions.
Financial transaction tax progress
The European Commission has published a report prepared for it by EY on the potential collection methods and data requirements for the proposed EU’s financial transaction tax (FTT). The report says the challenges facing tax collection are ‘unprecedented’. Whilst there is ‘no one clear path to follow’, the report says centralised approaches to collection are likely to be preferred over a self-administered system through the financial institutions themselves. Centralisation could involve existing central clearing/settlement processes, or the creation of a new utility.
Separately, the Council to the EU has been invited by its president to resolve outstanding issues on the FTT, with a view to mandating the Working Party on Indirect Taxation and the Committee of Permanent Representatives to finalise drafting of the compromise legislative text.
FATCA: US Treasury notifies ‘more favourable terms’ based on BVI agreement
The US Treasury has issued a notification to all FATCA partner jurisdictions, including the UK, of ‘more favourable terms’ contained within the US/British Virgin Islands agreement. These terms relate to alternative procedures for new accounts opened prior to the making of the agreement.
Accountant arrested for £2.2m tax fraud
Four people, including an accountant, were arrested by HMRC on suspicion of a £2.2m tax fraud in an early morning raid last week. The suspects, who were men aged 36, 39, and two aged 43, allegedly set up ‘an elaborate scheme of sub-contractors within the civil engineering industry with the sole intention of defrauding HMRC of VAT and PAYE’. Six properties were searched, including addresses in Essex (Dagenham, Chelmsford and Braintree), Hertfordshire (Tring) and the Republic of Ireland (two in County Kerry); and investigations are ongoing while all those arrested have been bailed until March 2015. HMRC has encouraged anyone with information to contact its hotline on 0800 595000.
HMRC guidance
HMRC has issued the following on its website:
a reminder of the 31 January deadline for IR35 balancing payments;
pensions flexibility 2015 tax information and impact note (updated);
Notice 554: Fuel used in private pleasure craft and for private pleasure-flying;
Notice 179: Motor and heating fuels: general information and accounting for excise duty and VAT;
Stamp Taxes Bulletin 2/2014; and
CSLA1: Student loans – information for agents.
HMRC has withdrawn the following factsheets: ES/FS1: Employed or self-employed for tax and NIC, and ES/FS2: Are your workers employed or self-employed for tax and NIC.
The government has tabled a new clause and schedule, and 12 supporting amendments giving effect to the changes announced in September, allowing specified death benefits to pass tax-free to nominated beneficiaries where the member of a defined-contribution scheme dies before the age of 75. The Public Bill Committee is to debate the amendments on 10 November 2014.
Child trust funds to junior ISAs draft regulations
Following consultation, the government has announced its intention to allow the transfer of savings from a child trust fund to a junior ISA with effect from April 2015. HMRC is now consulting until 2 January 2015 on the draft regulations, The Child Trust Funds (Amendment) Regulations, SI 2015/Draft, which set out the detailed rules for such transfers.
Social investment tax relief guidance
The Cabinet Office has issued guidance for prospective ‘social impact contractors’ on the accreditation scheme governing eligibility for the new social investment tax relief introduced in April 2014. Although HMRC is responsible for administering the tax relief scheme overall, the Cabinet Office will manage accreditation.
Gaming duty regulations
The General Betting, Pool Betting and Remote Gaming Duties (Returns, Payments, Information and Records) Regulations, SI 2014/2912, have been laid before the House of Commons. These regulations come into force on 1 December 2014 to prescribe the form and timing of returns and payments to be made 30 days from the end of each accounting period, and require betting exchange operators to provide profit statements which enable bookmakers to make accurate returns to HMRC. The regulations also supplement the Registration, Records and Agents Regulations, which came into force on 18 September, by allowing HMRC to impose additional record-keeping conditions.
Financial transaction tax progress
The European Commission has published a report prepared for it by EY on the potential collection methods and data requirements for the proposed EU’s financial transaction tax (FTT). The report says the challenges facing tax collection are ‘unprecedented’. Whilst there is ‘no one clear path to follow’, the report says centralised approaches to collection are likely to be preferred over a self-administered system through the financial institutions themselves. Centralisation could involve existing central clearing/settlement processes, or the creation of a new utility.
Separately, the Council to the EU has been invited by its president to resolve outstanding issues on the FTT, with a view to mandating the Working Party on Indirect Taxation and the Committee of Permanent Representatives to finalise drafting of the compromise legislative text.
FATCA: US Treasury notifies ‘more favourable terms’ based on BVI agreement
The US Treasury has issued a notification to all FATCA partner jurisdictions, including the UK, of ‘more favourable terms’ contained within the US/British Virgin Islands agreement. These terms relate to alternative procedures for new accounts opened prior to the making of the agreement.
Accountant arrested for £2.2m tax fraud
Four people, including an accountant, were arrested by HMRC on suspicion of a £2.2m tax fraud in an early morning raid last week. The suspects, who were men aged 36, 39, and two aged 43, allegedly set up ‘an elaborate scheme of sub-contractors within the civil engineering industry with the sole intention of defrauding HMRC of VAT and PAYE’. Six properties were searched, including addresses in Essex (Dagenham, Chelmsford and Braintree), Hertfordshire (Tring) and the Republic of Ireland (two in County Kerry); and investigations are ongoing while all those arrested have been bailed until March 2015. HMRC has encouraged anyone with information to contact its hotline on 0800 595000.
HMRC guidance
HMRC has issued the following on its website:
a reminder of the 31 January deadline for IR35 balancing payments;
pensions flexibility 2015 tax information and impact note (updated);
Notice 554: Fuel used in private pleasure craft and for private pleasure-flying;
Notice 179: Motor and heating fuels: general information and accounting for excise duty and VAT;
Stamp Taxes Bulletin 2/2014; and
CSLA1: Student loans – information for agents.
HMRC has withdrawn the following factsheets: ES/FS1: Employed or self-employed for tax and NIC, and ES/FS2: Are your workers employed or self-employed for tax and NIC.
