News

Annual allowance

HMRC have published a draft statutory instrument, together with guidance and an explanatory memorandum, on the pensions annual allowance, which alters legislation following changes in FA 2011. Comments should be emailed by 27 August.

The process for applying for a certificate of residence for a registered pension scheme has retooled with effect from 4 August.

Form APSS146E must be used by the owner of the scheme assets, or an authorised third party, to request a certificate.

There is no need to send another APSS146E if HMRC already hold a completed form that details who owns the assets.

If an APSS 146 has not been completed because the scheme owner has not previously reclaimed UK tax, he or she can apply for a certificate of residence providing in writing:

CIOT warns of “extensive battles” over interpretation of law

Basic PAYE tools updated

HMRC’s basic PAYE tools product for 2014/15 (version 14.0.14168) is now available. It is an update to the existing version, rather than a separate download, which allows users to amend or correct an employee payment and add a mistimed payment. The user guide has been updated to reflect the changes.

RPI

The value of the retail price index for May 2014 is 255.9.

Anonymous views sought on employee benefits revamp

HMRC are consulting on legislation to replace the long-standing extra-statutory concession (ESC) D33.

The concession covers a number of circumstances in which a capital sum is received as compensation or damages for a right of action that is capital in the hands of the recipient and subject to capital gains tax under TCGA 1992, s 22.

It does not apply where a capital sum has been derived from any other type of asset including statutory rights or contractual rights.

The government is looking at whether changes should be made to the way property authorised investment funds (PAIFs) and co-ownership authorised contractual schemes (CoACSs) are treated for stamp duty land tax (SDLT) purposes.

HM Treasury has launched a consultation, Stamp Duty Land Tax: Rules for Property Investment Funds, which sets out proposals and how they ought to be implemented, and seeks views on the potential design.

HMRC is planning to shore up the disclosure of tax avoidance schemes (DOTAS) regime through a series of revamps and additions.

A consultation document published by the tax department puts forward options on how to improve the information provided through DOTAS and how to support the new accelerated payments rules.

The main proposals centre on changes to:

Emergency services

HM Treasury has published a consultation document on extending to all members of the emergency services the inheritance tax exemption for armed forces personnel who die on active service (IHTA 1984, s 154).

GOV.UK

HMRC have published an update on the department library’s move to to GOV.UK.

Victims of missold interest rate hedging products (IRHPs) must declare compensation payments, HMRC have stressed.

Some taxpayers became entitled to redress payments following a review in light of failings identified by the Financial Conduct Authority in the way banks sold IRHPs to firms taking out business loans.

The bank calculates each payment based on analysis of the sales process. The figure comprise up to three elements: basic redress, compensatory interest and consequential losses.

HMRC are offering users of contractor loan schemes the chance to avoid litigation over their tax affairs.

The schemes are complex arrangements by which individuals sign an agreement of employment with an offshore employer. They receive remuneration in the UK, through an offshore company or trust, in supposed non-taxable loans, rather than income.

HMRC have launched plans to reduce the administrative burden for businesses subject to the annual tax on enveloped dwellings (ATED).

A new consultation document by the department comes in light of the reduction in the ATED threshold and proposes two options.

The first would retain the current filing date while allowing taxpayers who are eligible to claim a relief for more than one property and do not have an ATED liability to submit a supplementary return after the end of the chargeable period.