This Practice Note: • outlines the UK rules imposing a requirement to deduct (and account to HMRC for) an amount in respect of UK income tax at the basic rate (currently, 20%) from payments for the use of, or the right to use, intellectual property (IP), including royalties • explains the concepts of IP and UK source, which are relevant to the rules requiring income tax to be withheld at the basic rate from IP-related payments • covers the reliefs that may be available from UK withholding tax applicable to IP-related payments, and • discusses the anti-abuse rules that may apply to prevent double tax treaty (DTT) relief from applying to the relevant IP-related payment, including: ◦ the principal purpose test, and ◦ the anti-treaty shopping rule for connected parties This Practice Note also briefly discusses the subject to tax rule. IP-related payment is the term used in this Practice Note to refer to royalties and other sums paid for the use of, or for the right to use, IP. This

Unless an exemption or a relief applies, a payment of UK source yearly interest is subject to a requirement to deduct (and account to HMRC for) an amount in respect of UK income tax at the basic rate (20%) or, from 6 April 2027, at the savings basic rate (22%) if made: • by a company (unless it is made by that company in a fiduciary or representative capacity) • by a local authority (unless it is made by that local authority in a fiduciary or representative capacity) • by or on behalf of a partnership of which at least one partner is a company, or • by any person to another person whose usual place of abode is outside the UK (broadly, this applies where the recipient is an individual who usually lives outside the UK or a company whose main place of business is outside the UK and which does not have a permanent establishment in the UK in respect of which the interest is within the charge to UK corporation tax) The

MLex: EU lawmakers have said the UK ‘does not currently meet the conditions’ to allow the continued free flow of personal and law-enforcement data, and expressed ‘strong doubts’ about an interim six-month agreement that allows those flows as part of a post-Brexit trade deal. The non-binding opinion from the European Parliament’s civil liberties committee (LIBE Committee), adopted on 4 February 2021, comes just weeks before the EU’s data protection authorities are set to scrutinise the European Commission’s draft decision on adequacy, which is crucial for continued economic and security co-operation between the EU and the UK.

MLex: The UK's new online safety legislation has passed the House of Lords on 6 September 2023. The Online Safety Bill was approved with some final amendments on remote access and minister’s powers, including a further note from the government that allows content scanning on private communications, but will not be enforced until technically feasible.

MLex: The UK’s Online Safety Bill is ‘too broad, too vague, in parts too intrusive,’ the regulator overseeing enforcement will struggle, and it could even chill innovation and threaten the country's economy, the main tech lobby group warned in a wide-ranging broadside at a conference on 18 May 2023. Speakers from the regulator, Ofcom, stressed that they would be ready and had been making preparations for years.

The 'House of Lords' Modern Slavery Act 2015 Committee has published a report 'The Modern Slavery Act 2015: becoming world-leading again'. This finds that recent changes to UK immigration laws have weakened victim support, while fragmented labour market regulations hinder effective responses to evolving modern slavery issues, particularly in the care sector. Additionally, while the Modern Slavery Act 2015 aimed to enhance supply chain transparency, global best practices now require companies to conduct due diligence and actively eliminate modern slavery in their operations. The report makes recommendations regarding these issues.

Law360, London: Britain's sanctions enforcer's recently imposed its first fine for a breach of Russia-related restrictions—a modest reminder that the watchdog will penalize companies that fail to understand black-letter regulations rather than the warning shot that lawyers had expected.

MLex: The UK's new failure to prevent fraud offence, which will penalise large companies failing to put in measures to fight wrongdoing, is unlikely to become law before 2025 due to delays caused by the election, MLex has learned.

Law360: UK and European pensions must move beyond preparation to active participation with venture capital (VC) investment that could 'unleash' significant growth across the EU, new analysis by a research group for the sector shows.

The Department of Business and Trade has announced that a Memorandum of Understanding (MoU) has been signed by the UK, United States and Australia which establishes a new trilateral collaboration aimed at strengthening cooperation and addressing risks to critical supply chains. Under the MoU, the Australia-United Kingdom-United States Supply Chain resilience Cooperation Group is established. This group aims to collaborate on data exchange and coordinated efforts to enhance resilience in crucial supply chains. This group will pilot an early warning system focused on the telecommunications supply chain, identifying and monitoring risks of disruptions to improve understanding of vulnerabilities and develop protocols for sharing this information and responding jointly to disruptions. Fortifying critical supply chains is essential for ensuring stability and resilience, and this agreement strengthens the significant relationship among the UK, US, and Australia, reaffirming their commitment to addressing supply chain challenges.

According to the Interpretation Act 1978, the UK or United Kingdom consists of Great Britain and Northern Ireland.

The Foreign, Commonwealth & Development Office has updated its document collection on the UK-EEA EFTA Separation Agreement Joint Committee, which oversees the implementation and application of the EEA EFTA Separation Agreement in the UK, Norway, Iceland and Liechtenstein. Recent additions to the collection include the third and fourth annual reports, covering the period 1 January 2023 to 31 December 2024. The 2025 report has not yet been published.