STEP UK news digest 20 December 2012


FATCA – HMRC issues guidance on FATCA IGA

HM Revenue and Customs has this week issued draft guidance to implement the UK/US Intergovernmental Agreement regarding the US Foreign Account Tax Compliance Act (FATCA). They are seeking comment on both the guidance and the draft legislation by 13 February 2013.

HMRC (Guidance Notes) 

HMRC (Draft Legislation)

STEP Consultation Tracker

STEP TAX AVOIDANCE – HMRC warns: settle now or face litigation

HM Revenue and Customs has made an offer to enable participants in certain avoidance schemes to settle their tax liabilities. This offer comes with a caveat that failure to settle will result in disputes being ‘accelerated to litigation’.


The Guardian

ENFORCEMENT – No improvement in HMRC’s enquiry handling

HMRC are still very poor at dealing directly with taxpayers, especially phone enquiries, says a new official report.


REGULATION – Accountants to offer probate services after three days training

The Institute of Chartered Accountants in England and Wales has formally submitted its application to regulate probate services offered by non-lawyers. 

Legal Futures
Accountancy Live

STEP MEMBER SERVICE – STEP announces initial investment manager members to the Trustee Managed Portfolio Indices

STEP has today announced the initial investment managers who have supported the launch of the Trustee Managed Portfolio Indices (TMPI).

CHARITY – No relaxation of ban on trustee payments

The government has categorically rejected Lord Hodgson’s recommendation that larger charities should have a statutory power to pay trustees. Nearly all the Hodgson Review’s other suggestions for reform of the Charities Act were accepted or are still being considered.

Third Sector Online
National Council of Voluntary Organisations

RESIDENCE – Guidance on statutory residence test

HMRC has published draft guidance on the application of the statutory residence test that comes into force in the 2013-14 tax year, and on eligibility for overseas workday relief. The legislation will also provide for a tax year to be split into a UK part and an overseas part, and will contain new rules for taxing income and gains arising during temporary non-residence. Comments are invited by 6 February 2013. The STEP UK Technical Committee will respond on behalf of the Society.  

HMRC (Overseas Workday Relief, PDF file)
HMRC (Statutory Residence Test, PDF file)

PROPERTY INVESTING – Unwanted foreign homes flood the market

A recent survey suggests that one in ten overseas properties owned by UK residents are on the market, mostly because of higher interest rates and property taxes. Spain is the worst affected where 45 per cent of UK owners are trying to sell, though France’s recent tax increases on capital gains and rental income have also had a big effect. 


BUSINESS INVESTING – Boost for enterprise share options

The draft 2013 Finance Bill considerably improves the tax advantages attached to Enterprise Management Incentive (EMI) share options, says BKL Tax. From next April, employees or directors will pay only 10 per cent capital gains tax on the sale of shares obtained by exercising an EMI option at least one year after the option was granted, with no lower limit on the shareholding.

Baker Tilly

CORPORATE TAX – Impact of the autumn statement on business

The December issue of Saffery Champness’s newsletter for business owners and directors includes a look at the Chancellor’s recent autumn statement; HMRCs’ offer to settle tax liability on employee benefit trusts; the changes to the controlled foreign companies rules coming in January 2013; and how the new child benefit rules will force many more high earners to fill in self-assessment tax returns.

Saffery Champness (PDF file)

60-second interview with Laurie Lord TEP STEP member since 2000

‘I have lived and worked in three major cities in Canada and my STEP membership has certainly helped me settle into my business and industry community,’ says Laurie Lord TEP, STEP member since 2000


MINUTE-TAKING – Just a minute

Most matters concerning the proceedings at directors’ meetings are governed by the company’s articles and, in default, by reference to the common law. In addition, the statute law of all jurisdictions requires every company to keep minutes of all proceedings of directors. John Harper TEP on the importance of accurate and efficient minute-taking.


MERRY CHRISTMAS – Final STEP eNews of 2012

Today will mark the final STEP newsletter of 2012. The team will reconvene in the New Year on Monday 7 January. From all of us at the STEP news team we would like to wish you a fantastic holiday season and a happy and prosperous New Year.


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