The Pre Budget report has not brought any surprises this year. Please find below a summary on the main tax measures which are being presented as reported by Ripe Chartered Accountants: (more…)
Archive for the ‘UK Tax’ Category
Pre Budget Report summary
Thursday, December 10th, 2009Chancellor forced to eat his words on Non Doms
Wednesday, December 9th, 2009Extracted from Grant Thornton UK (April 2009)
In an acknowledgement of the complexity of the rules that were introduced for non-domiciled (non-doms) and not ordinarily resident individuals in 2008, the Government has had to back down on its commitment not to revisit the tax rules in the current and next parliamentary term. Today’s measures include:
Gibraltar is leading the race to full compliance with OECD!
Saturday, August 29th, 2009Last 27th August 2009 we have attended another significant event in Gibraltar. The signature of the Tax Information Exchange Agreement with the United Kingdom.
Paradoxically, being a territory of the United Kingdom, Gibraltar will establish with this TIEA an unprecedented level of Economic cooperation with the United Kingdom.
This event follows the signature of previous four TIEAs with Australia, New Zealand, Ireland and the USA, all completed during 2009.
From Taxprecision we continue encouraging Gibraltar to continue their efforts toward the signature of the TIEA with Spain, which we believe will enormously improve the Economy of both Governments. (more…)
Gibraltar and Spain.- First serious dialogue 300 years later!
Wednesday, July 22nd, 2009Yesterday we attended the first official visit of a Spanish Government representative to the Rock in the last 300 years. We welcome the common position reached, which will improve the exchange of information protocols and a possible treaty on taxation.
Leaving aside the issue of Sovereignty, the agreements reflect the XXI Century Diplomacy efforts based on dialogue. The meeting is in accordance with International Law protocols, the EU position and the OECD directives. Please find attached the communique following the meeting here.
Money Laundering and tax evasion.- Two different Offences?
Sunday, June 21st, 2009New legislation to prevent money laundering activities and the financial support of terrorism is in its way to the Spanish Parliament. The draft published by the Dirección General del Tesoro y Política Financiera in April involves an expanded definition of Tax evasion, which may affect accepted international standards.
UK Non Resident Rules monitored by the Revenue
Wednesday, June 17th, 2009The tax-exempt ‘non-resident’ status will be closely monitored by the Revenue as reported by The Times. Many affluent Brits living in Spain are enjoying a Non-resident status, and they ensure to spend no more than 90 days a year in the UK after moving abroad.
GUERNSEY AND THE UNITED KINGDOM-DOUBLE TAX TREATY SIGNED
Thursday, January 22nd, 2009As reported by the OECD the Bailiwick of Guernsey and the United Kingdom have today signed a bilateral agreement for exchange of information for tax purposes bringing to 10 the number of such agreements entered into by Guernsey, including:
- Guernsey/Denmark Tax Information Exchange Agreement
- Guernsey/Faroes Tax Information Exchange Agreement
- Guernsey/Finland Tax Information Exchange Agreement
- Guernsey/Greenland Tax Information Exchange Agreement
- Guernsey/Iceland Tax Information Exchange Agreement
- Guernsey/Netherlands Tax Information Exchange Agreement
- Guernsey/Norway Tax Information Exchange Agreement
- Guernsey/Sweden Tax Information Exchange Agreement
- Guernsey/United States of America Tax Information Exchange Agreement
- Guensey/United Kingdom Tax Information Exchange Agreement
This particular agreement is especially significant given the close economic and political relations between Guernsey and the United Kingdom.
Jeffrey Owens, Director of the OECD’s Centre for Tax Policy and Administration welcomed the new agreement as an important development. Given the current financial crisis, he noted, “it is now more important than ever that countries implement international standards of transparency and exchange of information.”
“Guernsey has signed nine tax information agreements with other countries within the past year, making its commitment to international standards in these areas clear and strengthening its reputation as a legitimate financial centre,” Mr. Owens said. “Guernsey has shown that the standards can be implemented quickly where there is a real willingness to do so.”
A bit of history to understand the relationship between Guernsey and the United Kingdom.
The Bailiwick of Guernsey is a British crown dependency off the coast of France. As well as the island of Guernsey itself, it also includes Alderney, Sark, Herm, Jethou, Brecqhou, Burhou and other islets. There are 10 Parishes in Guernsey. Together with the Bailiwick of Jersey, it is included in the collective grouping known as the Channel Islands. It is known in French as Guernesey.
According to the official States of Guernsey webpage, everything began in 933 AD when the Channel Islands became part of the Norman Realm. In 1066, the Duke of Normandy landed his army in Sussex and became William I of England. The Channel Islands, however, remained part of the Duchy of Normandy and continued to be governed as such.
When Continental Normandy was lost in 1204 the Channel Islands remained loyal to the King of England as the King promised to rule the islands as though he was the Duke of Normandy (i.e. observing the Duchy’s laws, customs and liberties). The special tax exemption regime in respect of the Kingdom of England was maintained since those times.
This arrangement has been confirmed in charters of successive sovereigns that have secured for the islands their own judiciaries and freedom from the process of the English Courts. Indeed the Islands are independent in all matters with the exception of international representation and defence for which the United Kingdom is responsible.
My experience of the States of Guernsey fiduciary and Trust system as well as the financial and business environment in general has been very positive. I also recommend Guernsey as a fabulous place to visit.
2008 PRE BUDGET REPORT: IS IT REALLY AIMED TO FUEL THE UK ECONOMY?
Monday, November 24th, 2008This year more than ever, perhaps inspired by the US Financial Summit, the people of the UK waited for the Pre-Budget 2008 with the hope to see some light at the end of the tunnel.
After listening to Mr Darling today the words “been there, done that” inevitably come to mind.
Of course we welcome the bringing forward of £3 billion of capital spending to 2008/09 and the small 2.5% VAT temporary rebate. These are the two most important measures introduced this year. Would that be enough to fuel the British Economy?
Personally, I was expecting a smarter use of tax policies aimed to increase business confidence, consumer expenditure or to attract further investment from companies or entrepreneurs.
It is difficult to see how a temporary reduction of 2.5% in the VAT rate could be sufficient to generate trust among the business community, nor to talk about consumers.
Very little else has been said beyond the traditional liturgy. As every year the personal allowances are updated, some adjustments in the National Insurance Contributions are made and improvements in the collection of taxes are also announced. That’s All Folks!
With a little bit of twisting here and there, this report could have been similar to that of previous years from a purely tax point of view.
Let’s look at the press notices to highligh the main points of this report.
The HM Treasury Pre-Budget 2008 Report Press Notices
- Facing global challenges: supporting people through difficult times. A nice introduction to respond to people’s expectations. Fair enough if you stop reading here.
- VAT, Income Tax, NIC, etc….. Nihil Novi Sub Sole, apart from the 2.5% temporary VAT rebate. You can determine by yourself if any of these measures could help to increase business confidence, consumer expenditure or attract further investment from companies or entrepreneurs.
- Ensuring fairness for all taxpayers A real classic before elections and let me make the point clearer by quoting: “The Chancellor announced today a package of measures designed to protect the tax system from abuse and ensure that all individuals and businesses pay the right amount of tax”. How is this going to be achieved without investing more in the Tax Offices of HM Inland Revenue and Customs, its staff and its IT systems?
We, the people working in the real economy, look forward to see a smarter use of tax policies to fuel the Economy. It would be great to see that the Pre-Budget 2008 is left behind by a new 2009 Budget acting as a real catalyst for the UK Economy.
Should Mr Darling have paved the road for some hopes to arise is something to be seen. I can not wait to see the Big 4 as well as financial analysts’ comments in tomorrow’s papers.
Meanwhile, and as usual I welcome your comments.
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Tony Cohen, a former colleague and partner of Deloitte UK heading the entrepreneurial business team, says:
“We welcome the fact that the Chancellor has announced a number of relatively small measures which together will certainly help entrepreneurs and SMEs in the current economic environment.¨
…The deferral for one year of the rise in the small companies rate of corporation tax is also welcome – although it is just for one year. Will this be a sufficient amount of time for these businesses to recover as they will likely need more time to rebuild?….
….On the face of it there is a massive pot of up to £3 billion available to the UK’s growing businesses. The big question is how, how much and how easily they get their hands on it. Entrepreneurial businesses need funds to flourish and all the measures in the Chancellor’s Pre-Budget Report, most especially the access to cash, will focus the mind of the UK’s entrepreneurs.”