Corporate Tax Update - January 2021

Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team. This month’s update reports on some of the key developments from December 2020. Included in this update are summaries of an unexpected twist in the DAC6 saga, a call for evidence on VAT and the ‘sharing economy’, and the Court of Appeal decision in the Development Securities case. As ever we hope you, your family and friends are all staying safe.

DAC6 largely repealed in the UK…to be replaced by the OECD’s MDR

On 29 December 2020, in a surprising development, regulations were made to amend the UK regulations that implement DAC6. With effect from 11pm on 31 December 2020, DAC6 hallmark categories A, B, C and E are repealed. From that point onwards, only DAC6 hallmark D remains applicable in the UK.  Read more

VAT treatment of movements of goods spanning 31 December 2020 – HMRC guidance

On 23 December 2020, HMRC published guidance on the VAT treatment of transactions and the movement of goods spanning the end of the Brexit transition period. In places where indicated, the guidance has the force of law..  Read more

Cumulative preference shares held to be “ordinary share capital” for ER purposes – UT decision in Warshaw

On 23 December 2020, the Upper Tribunal (UT) held  that cumulative preference shares with rights to compound accrued (but unpaid) dividends were “ordinary share capital” for the purposes of s.989 ITA 2007 and (therefore) entrepreneurs’ relief (ER).  Read more

Court of Appeal decision in Development Securities corporate residence case goes against taxpayer

On 15 December 2020, the Court of Appeal overturned the decision of the Upper Tribunal in HMRC v Development Securities plc and others. HMRC’s appeal has therefore been allowed.  Read more