Weekly tax highlights ― 19 July 2021

Produced by Tolley
Weekly tax highlights ― 19 July 2021

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly tax highlights ― 19 July 2021
  • Coronavirus (COVID-19)
  • EU temporary VAT exemption for supplies relating to coronavirus response
  • Direct taxes
  • Updated HMRC guidance: tax avoidance: general anti-abuse rule
  • Publishing details of deliberate tax defaulters (PDDD1)
  • Indirect taxes
  • The Customs and Excise Border Procedures (Miscellaneous Amendments) (EU Exit) Regulations 2021
  • Relief from stamp duty land tax in freeport tax sites
  • Valuing the estate of someone who has died
  • More...

Weekly tax highlights ― 19 July 2021

Coronavirus (COVID-19)

EU temporary VAT exemption for supplies relating to coronavirus response

The Council has adopted an amendment to the principal VAT Directive introducing a temporary VAT exemption for importations and for certain supplies in response to the coronavirus pandemic.

The ‘buy and donate’ Directive will introduce a VAT exemption for the purchase of goods and services by the Commission and other EU agencies for distribution, free of charge, to member states in response to the coronavirus pandemic.

Purchases of goods and services by an EU body on behalf of member states to respond to the emergency posed by the coronavirus pandemic will temporarily be added to the list of exempted transactions in Article 143 of the principal VAT Directive.

Once the emergency situation is over, the applicable VAT rates will be restored.

The changes are expected to apply with ‘retroactive’ effect from 1 January 2021.

Direct taxes

Updated HMRC guidance: tax avoidance: general anti-abuse rule

HMRC has updated its general anti-abuse rule (GAAR) guidance with effect from 16 July 2021. Parts A, B, C and E of the HMRC GAAR guidance have been updated. Part D, dated 11 September 2020, remains unchanged.

The updates reflect the Finance Act 2021 changes which made some minor and technical amendments, and amendments to the GAAR procedures, to cover partnerships and their partners. ‘Taxpayers’ in the guidance should now be read as covering partnership situations.

A new section E3.26 has been added under Part E with detailed information on the GAAR and partnership arrangements.

Publishing details of deliberate tax defaulters (PDDD1)

HMRC has updated the PDDD1 letter it sends out before publishing a taxpayer’s details following a deliberate inaccuracy penalty.

HMRC has rewritten the standard letter (PDDD1) it issues when setting out its intention to publish details of taxpayers who have been charged a penalty for deliberate inaccuracy in a return or other document.

The letter states up front that the intention to publish is a direct consequence of HMRC’s decision to charge a penalty for

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