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29 November 2000
Revenue press releases
Savings income information
Draft regulations have been published recently which provide detailed arrangements for implementing the new reporting régime announced in Budget 2000.
Savings income information
Draft regulations have been published recently which provide detailed arrangements for implementing the new reporting régime announced in Budget 2000.
Revenue press releases
Savings income information
Draft regulations have been published recently which provide detailed arrangements for implementing the new reporting régime announced in Budget 2000.
Legislation contained in the Finance Act 2000 extends the current information reporting arrangements, from April 2001, so that the Revenue can require banks and similar institutions paying interest, to report amounts of interest paid to non-resident individuals, as well as to residents. The new rules also extend reporting to cover interest on bonds and gilts, interest distributions made by bond funds, foreign dividends and redemption proceeds of discounted securities. The introduction of the new arrangements will coincide with the abolition of current withholding tax rules for financial institutions which act as paying and collecting agents of international bonds and foreign dividends.
The draft regulations set out the Government's proposals for detailed rules relating to the changes, in the light of consultation with the main representative bodies of the financial institutions affected. They also introduce consequential changes to existing regulations applying to the bank and building society tax deduction and information reporting régimes and update these in order to allow various forms and certificates to be provided electronically.
The Revenue has also recently published a draft regulatory impact assessment on the costs and benefits arising from the abolition of withholding tax on international bond interest and its replacement by the improved information reporting régime.
Any comments on the draft regulatory impact assessment and regulations should be sent by 22 December to: Geoff Barnard, Inland Revenue International, Room 509B, Melbourne House, Aldwych, London WC2B 4LL, e-mail: Geoff.Barnard@ir.gsi.gov.uk. Copies of these documents may be obtained from this address, but they are also available on the Revenue's website: www.inlandrevenue.gov.uk.
In addition to the draft regulations on information reporting, the Revenue has issued draft regulations that will repeal the requirement of paying and collecting agents in certain circumstances to collect Canadian and United States tax on dividends from those countries paid to residents of countries not entitled to a reduction in Canadian or United States withholding tax. The repeal of the Canadian regulations will take effect from 1 April 2001 and of the United States regulations from 1 January 2001 (the date the new United States Qualified Intermediary regulations take effect). In addition the regulations will repeal long redundant regulations relating to similar arrangements with the Netherlands and Sweden.
(Source: Inland Revenue press release dated 22 November 2000.)
Depositary interests
The Treasury has laid regulations recently that will allow depositary interests, including crest depositary interests, to be qualifying investments for individual savings accounts, provided that the investment is itself a qualifying investment for individual savings accounts.
Regulations have also been laid that will allow depositary interests, including crest depositary interests, to be qualifying investments for personal equity plans, provided that the investment is itself a qualifying investment.
These regulations will take effect on 13 December 2000.
The Regulations are the Individual Savings Account (Amendment No 3) Regulations 2000 – SI 3112/2000, and the Personal Equity Plan Regulations (Amendment) Regulations 2000 - SI 3109/2000. They are available from the Stationery Office and on the Internet at www.inlandrevenue.gov.uk.
(Source: Inland Revenue press release dated 22 November 2000.)
Relocation booklet
A new edition of booklet IR134 has been published by the Inland Revenue explaining the position for tax and National Insurance contributions where an employee gets help from his or her employer towards the cost of moving house.
Copies of the booklet are available, free of charge, from Revenue enquiry centres or tax offices, or from the Inland Revenue Visitors' Information Centre, SW Bush House, Strand, London WC2B 4RD. It is also available on the Revenue website.
(Source: Inland Revenue press release dated 20 November 2000.)
Savings income information
Draft regulations have been published recently which provide detailed arrangements for implementing the new reporting régime announced in Budget 2000.
Legislation contained in the Finance Act 2000 extends the current information reporting arrangements, from April 2001, so that the Revenue can require banks and similar institutions paying interest, to report amounts of interest paid to non-resident individuals, as well as to residents. The new rules also extend reporting to cover interest on bonds and gilts, interest distributions made by bond funds, foreign dividends and redemption proceeds of discounted securities. The introduction of the new arrangements will coincide with the abolition of current withholding tax rules for financial institutions which act as paying and collecting agents of international bonds and foreign dividends.
The draft regulations set out the Government's proposals for detailed rules relating to the changes, in the light of consultation with the main representative bodies of the financial institutions affected. They also introduce consequential changes to existing regulations applying to the bank and building society tax deduction and information reporting régimes and update these in order to allow various forms and certificates to be provided electronically.
The Revenue has also recently published a draft regulatory impact assessment on the costs and benefits arising from the abolition of withholding tax on international bond interest and its replacement by the improved information reporting régime.
Any comments on the draft regulatory impact assessment and regulations should be sent by 22 December to: Geoff Barnard, Inland Revenue International, Room 509B, Melbourne House, Aldwych, London WC2B 4LL, e-mail: Geoff.Barnard@ir.gsi.gov.uk. Copies of these documents may be obtained from this address, but they are also available on the Revenue's website: www.inlandrevenue.gov.uk.
In addition to the draft regulations on information reporting, the Revenue has issued draft regulations that will repeal the requirement of paying and collecting agents in certain circumstances to collect Canadian and United States tax on dividends from those countries paid to residents of countries not entitled to a reduction in Canadian or United States withholding tax. The repeal of the Canadian regulations will take effect from 1 April 2001 and of the United States regulations from 1 January 2001 (the date the new United States Qualified Intermediary regulations take effect). In addition the regulations will repeal long redundant regulations relating to similar arrangements with the Netherlands and Sweden.
(Source: Inland Revenue press release dated 22 November 2000.)
Depositary interests
The Treasury has laid regulations recently that will allow depositary interests, including crest depositary interests, to be qualifying investments for individual savings accounts, provided that the investment is itself a qualifying investment for individual savings accounts.
Regulations have also been laid that will allow depositary interests, including crest depositary interests, to be qualifying investments for personal equity plans, provided that the investment is itself a qualifying investment.
These regulations will take effect on 13 December 2000.
The Regulations are the Individual Savings Account (Amendment No 3) Regulations 2000 – SI 3112/2000, and the Personal Equity Plan Regulations (Amendment) Regulations 2000 - SI 3109/2000. They are available from the Stationery Office and on the Internet at www.inlandrevenue.gov.uk.
(Source: Inland Revenue press release dated 22 November 2000.)
Relocation booklet
A new edition of booklet IR134 has been published by the Inland Revenue explaining the position for tax and National Insurance contributions where an employee gets help from his or her employer towards the cost of moving house.
Copies of the booklet are available, free of charge, from Revenue enquiry centres or tax offices, or from the Inland Revenue Visitors' Information Centre, SW Bush House, Strand, London WC2B 4RD. It is also available on the Revenue website.
(Source: Inland Revenue press release dated 20 November 2000.)
