HMRC accepts that most owners of SMEs want to get their tax right and that the tone of HMRC’s communications with SMEs ‘needs to reflect this better’, the department said in a Budget day note setting out proposed changes to the tax legislation for smaller businesses and how HMRC intends to delive
The European Commission has formally requested the UK to amend its legislation providing for ‘exit taxes’ on companies.
A targeted anti-avoidance rule intended to counter arrangements to secure a tax advantage in the transition to a new regime for life insurance companies will take effect from 21 March 2012 ‘because there is a significant risk to tax revenue arising from the transition’.
Proposed amendments to CAA 2001 will ensure that rules for calculating the lessee’s disposal value at the end of a long funding lease ‘operate as intended so that the relief available by way of capital allowances does not exceed the net expenditure of the lessee not otherwise relieved’.
Finance Bill 2012 will amend ITTOIA 2005 s 168 to deny an income tax or corporation tax deduction being given where a payment ‘arises from avoidance arrangements’.
Companies that have elected for the tonnage tax rules to apply to maritime transport activities and start to operate a non-EU/EEA-registered ship during the financial year starting on 1 April 2012 must apply a ‘flagging test’ to determine whether the ship qualifies for tonnage tax, HMRC explained
Chris Morgan provides your update on international tax developments, including the recent update on CFC reform, the EC consultation on double non-taxation, and the Green Paper on the German/French co-operation in the area of business taxation.
Perminder Gainda looks at a recent decision of the First-tier Tribunal on the application of the principle that interest for individuals is generally taxable when received.
Robert Langston provides your refresher guide to the UK tax rules for classifying foreign entities.