Key post-Brexit tax and customs changes

A Tolley summary of the most significant Brexit changes – for VAT, customs and direct taxes

Amidst all the flurry of last minute Brexit negotiations and an 11th hour trade deal, it is easy to lose track of the main tax implications. This Tolley summary highlights what we consider to be the most significant Brexit changes – for VAT, customs and direct taxes.

2 March 2021

Also in this edition

Hui Ling McCarthy QC considers the government proposals to restrict appeal rights and their potential impact on tax appeals

On 30 November 2020, the Ministry of Justice published a consultation entitled ‘Reforms to arrangements for obtaining permission to appeal from the Upper Tribunal to the Court of Appeal’. The Consultation addresses two specific matters:

2 March 2021

Keith Gordon looks at a case which considers the scope of the transfer of assets abroad legislation

The transfer of assets abroad (TAA) legislation is one of those long-established anti-avoidance provisions that should never be overlooked. However, as it comes up quite rarely in practice, it is easy for advisers to lose sight of the rules.

There are currently three strands to the TAA legislation:

charging income accruing to persons abroad;
charging the receipt of capital sums; and
bringing benefits received from persons abroad into the charge to tax.

This article focuses on the first of those provisions, which lay at the centre of the recent case of HMRC v Rialas [2020] UKUT 367 (TCC).

2 March 2021

Rob Mander considers how e-commerce is transforming the global tax landscape and the real estate sector

Since the 1950s, international trade and travel have increasingly become a familiar part of our everyday lives, and innovations in technology have meant that borders are less of a barrier than ever. While the digitalisation of global commerce was already gathering pace, the Covid-19 pandemic has undeniably accelerated the shift from conventional brick and mortar businesses to online services. This comes as more consumers are now inclined to shop online to reduce their exposure to Covid-19.

2 March 2021

Kugan Panchalingam and Justin Cobb consider what the terms reasonable care and excuse mean in practice

Since the introduction of the Requirement to Correct (RTC) legislation and the ongoing development of worldwide automatic exchange of information systems, advisers have been receiving unprecedented levels of enquiries from individuals.

Often, it is a simple case of the taxpayer not having reported bank interest. The figures tend to be insignificant in the taxpayer’s overall context and cases are quickly disclosed and agreed. At times, however, the offshore structure and the history leading up to the non-compliance can be very complex.

2 March 2021

Mike Bonner-Davies and Seamus Murphy consider some potential inheritance tax implications for FURBS and EFRBS following the Parry case

Funded unapproved retirement benefit schemes (FURBS) and funded employer-financed retirement benefit schemes (EFRBS) are unapproved pension schemes that were funded with employer contributions. Generally speaking, FURBS were funded prior to 6 April 2006 and EFRBS thereafter.

Both tend to be trust-based arrangements where the trust deed sets out the powers and obligations of the trustees and the plan rules set out the members’ entitlement to benefits, the precise terms of which will be relevant to the ultimate inheritance tax position.

2 March 2021

Lauren Marlow and Rachel Bevan provide a simple guide setting out how to be a trustee

If you are appointed as a trustee, it is important to understand clearly the position you have accepted.

Below we set out responses to ten typical questions that we are asked to provide a simple overview on how to be a trustee. This guide is not a substitute for legal advice on your specific circumstances.

1. What is a trustee and who can be one?

A trustee is the legal owner of assets in a trust fund, which they hold for the benefit of one or more individuals called beneficiaries. Trustees have a legal obligation to deal with the trust assets in accordance with the trust instrument.

2 March 2021

Tax Adviser shares the experiences of four female tax practitioners, including the challenges they have faced and the skills and support that have helped them to build their career

International Women’s Day is a global day celebrating the social, economic, cultural and political achievements of women.

The day also marks a call to action for accelerating gender parity. Significant activity is witnessed worldwide as groups come together to celebrate women’s achievements or rally for women’s equality.

Marked annually on March 8th, International Women’s Day is one of the most important days of the year to:

2 March 2021

Emma Chamberlain examines the complexities involved in negotiating home loan arrangements and inheritance tax

The home loan scheme (or, as it is sometimes known, the ‘double trust’ scheme) became a popular way of avoiding inheritance tax on the family home in the early 2000s. It seemed a good alternative to Ingram schemes that had been closed down in 1999 (see Finance Act 1986 s 102A). Few home loan schemes were established after the introduction of stamp duty land tax in 2003 as it was no longer possible to defer payment of stamp duty. Despite their relatively short shelf life of about three years, it is believed that some 30,000 schemes were executed.

2 March 2021

Bill Dodwell asks how many people have been unable to access the Self Employed Income Support Scheme

On 15 February, the Treasury Committee published its third report looking at the tax and economic effects of Coronavirus (see bit.ly/3bkqcAi). The paper urged the government to extend assistance to ‘those missing out, including limited company directors and freelancers’.

Limitations of the SEISS

2 March 2021

Simon Howley considers the legislation governing the transfer of property from personal to corporate ownership, including how this can trigger stamp duty land tax charges

Back in the early 2000s, it used to be common practice to find property held within the trading company. As this was the main source of revenue, it was cheaper than extracting monies via dividends or salary, and then buying the property out of net income.

However, the downside to holding the property within the company was that the company paid corporation tax on any disposal, and then the individuals paid income tax on the extraction of the net proceeds. It felt like ‘double taxation’.

2 March 2021

Key post-Brexit tax and customs changes

A focused Budget with a long tail

Getting ready for the deadline

Get ready for major changes

To close or not to close?

Further extensions to support schemes

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Key post-Brexit tax and customs changes

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A focused Budget with a long tail

Getting ready for the deadline

Get ready for major changes

To close or not to close?

Further extensions to support schemes