Following the conclusion of negotiations between the UK and the EU on a Free Trade Agreement (FTA) HMRC has announced that it will no longer be implementing DAC6 under the UK/EU FTA.
Partner Gary Ashford stated, “This a sign of more changes to come post-Brexit.
The UK Government is wasting no time in demonstrating it will take its own path in terms of its international Tax Compliance obligations. There will be many UK tax advisers very pleased to see this change, as the complexities of DAC6 were such that there was a fear many UK advisers with little international tax compliance experience might struggle to determine whether matters were reportable or not. HMRC is making it clear they will still implement some parts in relation to those who sought to circumvent Common Reporting Standard reporting and will also consult on further changes. If the non-UK side of any cross-border arrangement is or was within the EU, then potentially there may still be DAC6 reporting by an intermediary in that other EU country. It will be interesting to see other changes that might be brought in, arguably to make the UK more competitive.”
You can read Gary’s media coverage on the topic below:
- eprivateclient – Unexpected but welcome surprise for tax advisers discovered in Brexit legislation (£)
- FT Adviser – Advisers urged to brush up on tax rules after govt u-turn
- Taxation – UK repeals most of DAC6 reporting triggers (£)
- Bloomberg Tax – UK Tax Authority and DAC6 – Looking to the Future