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...ERSS bulletin; Helen Lewis; Second-hand fixtures
Avoidance or evasion
The chancellor was asked whether HMRC planned to change how they measure their compliance activities to distinguish between evasion, avoidance and tax planning. Sajid Javid, economic secretary to the Treasury, replied that it was “not always possible to determine precisely what type of behaviour has caused a particular tax risk. In some cases, for instance, arrangements are only shown to constitute avoidance at a late stage of an inquiry as the facts emerge. Similarly, it is not always possible to distinguish between error and deliberate mis-statement of the facts.” (Hansard, 27 February 2013, vol 559, no 120, col 505W)
Tax agreements
The double taxation convention between the UK and the Federal Democratic Republic of Ethiopia, which was signed in London on 9 June 2011, entered into force on 21 February 2013. In addition, new comprehensive conventions between the UK and Norway and the UK and Spain have been signed. They will enter into force once the necessary legislative procedures have been completed.
ERSS bulletin
HMRC’s seventh Employment-related shares and securities bulletin providing information on developments relating to employment-related securities, including tax-advantaged employee share schemes, has been published.
Helen Lewis
The article Holiday investment, which appeared in last week’s Taxation, was written by Helen Lewis, tax technical director at Francis Clark, and was incorrectly credited in the print version to John Endacott. Our apologies to Helen and John for the error.
Second-hand fixtures
HMRC have published draft guidance on plant and machinery allowances in respect of qualifying expenditure on second-hand fixtures. Legislation was introduced in the 2012 Finance Bill to make the availability of capital allowances to a purchaser of second-hand fixtures conditional on the pooling of relevant expenditure prior to a transfer, and on the seller and purchaser formally agreeing a value for fixtures within two years of a transfer, or on formal proceedings to agree the value being commenced within that time.Comments on this draft guidance, which can be found in Revenue and Customs Brief 3/13, should be sent to the taxman by 15 May. HMRC aim to publish this guidance in their Capital Allowances Manual as soon as possible after comments on the guidance have been considered.
