Tax and the City review for October 2022

In Burlington the FTT considers for the first time the purpose test which often appears in double tax treaties. The UT dismisses HMRC’s appeal in Aozora GMAC confirming that unilateral relief is available for US withholding tax on interest paid to a UK resident that was not a qualified person within the LOB article of the UK/US DTT. Draft regulations are published to help mitigate the tax consequences of the adoption of IFRS 17 from 1 January 2023. In eMerchantPay the FTT holds that supplies were exempt supplies of intermediary services and not taxable payment processing services. A Bill is introduced to Parliament to abolish the special status of retained EU Law in the UK statute book with a sunset date of 31 December 2023 (which may be extended to 2026 for some specified pieces of retained EU law) by which all remaining retained EU Law...