The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note considers a number of issues that may be relevant to businesses which move goods between the UK and the EU when preparing for the end of the Brexit implementation period.
For an overview of the impact of Brexit on VAT and customs more broadly, see the Brexit ― overview guidance note.
Uncertainty still remains for VAT and customs as to how the Withdrawal Agreement will be implemented (especially in relation to Ireland and Northern Ireland) but this guidance note seeks to provide an overview of some of the key points that businesses need to be aware of.
For further in-depth commentary on the law, see De Voil Indirect Tax Service V1.301.
Under the terms of the Withdrawal Agreement agreed between the UK and the EU, the UK will broadly leave the EU customs union. However, the position is complex in respect of Northern Ireland which will remain subject to EU customs legislation (see further in the Brexit ― overview guidance note).
As the UK is broadly expected to leave the EU customs union (and depending on the terms of the future relationship after the implementation period), it appears likely that many businesses moving goods within the EU, which did not previously need to deal with customs duties / declarations, will need to deal with them after the end of the implementation period.
The Government has published what it says will be the UK Global Tariff (UKGT) from the end of the implementation period. This UKGT will replace the current EU Common External Tariff.
TheGovernment has also suggested that border controls will be phased in between 1 January 2021 and 1 July 2021. This means that whilst basic customs requirements will apply from 1 January 2021, for most goods businesses will have up to six months to submit customs declarations and it will be possible to defer duty payments until the customs declaration has been made.
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‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
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