Following on from our story on Monday in which we highlighted the Institute’s plans to flag our concerns about the 2023/24 self-assessment online filing deadline to HMRC in the context of the recent storms, the Institute requested that HMRC take a pragmatic approach to this issue. We can now share the outcome of those discussions after receiving an update from HMRC. This confirms that whilst a blanket easement is not possible, HMRC will take a sympathetic approach towards those filing after the deadline on a case by case basis. The Institute therefore recommends that if a return is filed late because of the recent weather, the additional information box should be completed to outline the specific reason(s) why and claim reasonable excuse. HMRC will therefore cancel penalties where taxpayers can provide a reasonable excuse. The full update from HMRC is as follows: “ Thank you for raising the possible impacts of the recent severe weather across parts of Ireland and the UK on people and businesses in the run up to the Self Assessment deadline. Undoubtedly, this would have impacted some individuals, businesses and agents still trying to submit SA returns. Given the timing of these very recent events and the fact that areas most impacted are difficult to identify, we are not in a position to invoke a unilateral easement. We will however take a sympathetic approach towards those filing after the deadline on a case by case basis. We don’t want to collect penalties – our aim is to support taxpayers to get their tax right and avoid fines. We will cancel penalties where taxpayers can provide a reasonable excuse within 30 days of the penalty being issued, in which case no financial fine is levied. We will of course take into account the impact of adverse weather when it comes to such appeals. We will also take steps to ensure that teams reviewing forthcoming appeals are alert to the detail of the guidance and will apply it empathetically, appropriately and consistently. Please be reassured that HMRC will be delivering a fair, even-handed and consistent approach across everyone impacted in whatever capacity.” By way of reminder, those without a reasonable excuse will be issued with a penalty including: an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time, after 3 months, additional daily penalties of £10 per day, up to a maximum of £900, after 6 months, a further penalty of 5 percent of the tax due or £300, whichever is greater, and after 12 months, another 5 percent or £300, whichever is greater. 31 January 2025 is also the due date for paying any remaining income tax and Class 4 national insurance contributions for 2023/24 and is also the first self-assessment payment on account deadline for 2024/25.

In Irish news, Revenue has issued two new Tax and Duty manuals which outline both the registration requirements and the operation of the residential zoned property tax, and new guidance has been published on the close company surcharge. In UK news, we issue a reminder that the 2023/24 online self-assessment filing deadline is Friday 31 January 2025, and the Institute responds to the HMRC consultation on new ways to tackle non- compliance. In International news, the US President has published a memorandum stating the Two-Pillar Solution has no force or effect in the US. Ireland 1. Revenue has published two new Tax and Duty manuals on the operation of residential zoned property tax (RZPT) and the registration obligations for this tax. 2.Read about the updates to the Tax and Duty manual on the close company surcharge. UK 3. Read about the 2023/24 online self -assessment filing deadline and the possible impact of Storm Éowyn. 4. The Institute recommends that HMRC should review its existing compliance powers before introducing any new powers. International 5. President Trump publishes a Memorandum on OECD Global Tax Deal stating that the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy has no force or effect in the United States. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner here.  

On Tuesday, 18 March 2025, the European Commission and the European Parliament will co-host the third EU Tax Symposium. The event is to bring together finance ministers, politicians, policymakers, academics and others to discuss the future of EU tax systems under the theme Strengthening Competitiveness and Fairness to Build Prosperity. Registration is now open for the symposium which will take place in Brussels and will also be livestreamed.

Following his inauguration on 20 January 2025, the President of the United States of America, Donald Trump, has published the Presidential Actions. The publications include a Memorandum on the OECD Global Tax Deal which states that the OECD’s Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy has no force or effect in the United States.

Revenue has recently updated two other Tax and Duty Manuals. Details are set out below. The updated manuals are as follows: Electronic Relevant Contracts Tax system to include further links to additional information on the operation of this tax. The additional links relate to relevant operations, principal contractors and subcontractors. The Unpaid Remuneration manual to remove a reference to section 989 TCA 1997 and to update an example.

Revenue has updated the Tax and Duty Manual on the Controlled Foreign Company (CFC) rules to includes changes made in the Finance Act 2024 and Finance Act 2023. The changes are as follows: An amendment to the provision providing for the Irish defensive measures in respect of the CFC rules and to include the updated EU Code of Conduct list of non- cooperative jurisdictions for tax purposes Amendment to the rules for calculating ‘undistributed income’ of the CFC arising from the introduction of the new corporation tax exemption for certain foreign dividends Pillar 2 related amendments to the CFC rules for creditable tax and effective tax rate exemption.

Revenue has updated the Stamp Duty Manual Part 7 Section 83D- Repayment of Stamp Duty where land used for residential development. The manual applies to single dwelling and multi-unit developments. The updated manual contains new and updated examples and guidance on record retention and information dissemination. It also includes two new appendices which contain the following: Appendix 1 includes a checklist of the conditions to be satisfied to qualify for a repayment and also the conditions to be satisfied to avoid a clawback. Appendix 2 contains a comprehensive guide on how to make a repayment claim using Revenue’s eRepayments system. 

Revenue has updated the Tax and Duty Manual on leases of farmland to reflect a Commission Regulation increasing the allowable ceiling of de minimis aid from 16 December 2024. Section 81D of the Stamp Duties Consolidation Act 1999 provides relief from stamp duty for a lease of farmland whose term is not less than six years and does not exceed 35 years. In addition, the lands must be used exclusively for farming carried on by the lessee on a commercial basis and with a view to the realisation of profits. This relief is considered a State Aid therefore the manual has been updated to increase the allowable ceiling from €20,000 to €50,000 with effect from 16 December 2024. The manual has also been revised to note that the ceiling applies to the amount of all de minimis aid that is granted in accordance with the Regulation, whether given by way of tax relief or direct grants.

Revenue’s second newly published Tax and Duty Manual on the RZLT sets out the operational guidelines for the registration of a site for these purposes. These guidelines set out the registration responsibilities of liable persons in relation to the sale of a relevant site which are outlined below. RZLT is an annual tax which commences in 2025 and is calculated at 3 percent of the market value of land within its scope. Returns and payments are due on or before 23 May 2025. The RZLT does not apply to certain properties, such as those already subject to the Local Property Tax (LPT). Local authorities have created and published maps identifying land within the scope of the RZLT and these maps will be revised by 31 January each year. Maps should be reviewed to determine if a property is liable to RZLT. The manual also outlines how to: Register a site for the RZLT Register a site for the RZLT where planning permission was granted on a portion of the site Submit a declaration on the commencement of non-residential development.

Revenue has published a new Tax and Duty Manual containing guidelines on the operation of the RZLT. These guidelines set out the responsibilities of liable persons in relation to the sale of a relevant site. The guidelines specifically outline the relevant process in respect of the following: Submitting a RZLT transfer or sale return Submitting a RZLT transfer or sale return within a group structure How to make a RZLT payment.

Revenue has updated the Tax and Duty Manual on the Digital Games Corporation Tax Credit outlining how the credit is claimed and used where expenditure is incurred in accounting periods commencing on or after 1 January 2024. The main changes are as follows: Claims for an interim digital games corporation tax credit must be made in Form CT1 for the accounting period in which the expenditure was incurred. This claim must be made within 12 months from the end of that period, Claims for the digital games corporation tax credit must be made in Form CT1 for the accounting period in which the last of the expenditure was incurred. This claim must also be made within 12 months from the end of that period, Where the final cultural certificate is issued and the date is less than 3 months prior to the expiry of the 12 month period, the company has an extended period to make a claim. In these cases, a claim must be made three months from the date on which the final cultural certificate was issued, and The company must elect how the credit is to be treated; either as an overpayment of tax, an offset against tax liabilities, or as a repayment to the company by Revenue.

Revenue has updated the Tax and Duty Manual on the surcharge on certain undistributed income of close companies to include new and updated examples illustrating the application of the surcharge. Some sections of the manual have been reorganised and extra clarifications included