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This week's news in brief: 15 November 2012

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Patent box for EEA rights

The lower rate of corporation tax on profits attributable to patents (patent box) is to apply to certain equivalent rights granted by specified EEA states. The draft Profits from Patents (EEA Rights) Order 2013 will provide that CTA 2010 Part 8A will apply to equivalent rights of those EEA states.

Indexation allowance

The value of the retail prices index for October 2012 is 245.6, representing an increase over October 2011 of 3.2% (up from 2.6% in September). CPI inflation, the government’s preferred measure, was 2.7% in October (up from 2.2% in September).

Film tax credit claims

HMRC has issued a report into the take-up, cost and delivery of the film tax relief introduced in January 2007. The report covers the whole period of operation up to the end of 2011/12.

Supplies of freight transport

VAT is to be removed from supplies of certain freight transport and associated services which take place outside the EU. The Value Added Tax (Place of Supply of Services) (Transport of Goods) Order, SI 2012/2787 amends the place of supply rules in VATA 1994 Sch 4A so that the place of supply will be where the services are performed rather than the place where the recipient belongs. The Order replaces a temporary easement introduced to address the situation in HMRC Brief 13/2010 in March 2010.

Scottish stamp taxes

The Scottish government has summarised the responses received to its consultation on a proposed new land and buildings transaction tax to replace SDLT in Scotland from 2015. A majority of respondents supported the idea of a new, progressive tax for residential property, but views were mixed as to whether the tax should apply to commercial land and property.

India tax avoidance agreement

The governments of the UK and India have agreed a protocol to the UK/India Double Taxation Agreement. The protocol provides new articles on dividends, the exchange of tax information and assistance in the collection of taxes.

Tax compliance campaign

HMRC has launched a two-week, national advertising campaign aimed at encouraging ‘tax cheats to declare all their income before it is too late’. A new website has also been set up ‘to help support those who want to pay the correct tax’.