Revenue has updated the Tax and Duty Manual regarding full self-assessment time limits for making enquiries and making or amending assessments. Finance Act 2022 amended section 959AA(2A) TCA 1997, which provides that assessments may be amended outside of the normal four-year time limit as a result of a Mutual Agreement Procedure (MAP) determination. The updated manual also outlines that tax returns may be amended outside of the four-year time limit to account for the knock-on effects of a MAP or correlative adjustment, even if the company whose return is amended was not directly a party to the MAP or correlative adjustment. The MAP is a means through which competent authorities consult to resolve disputes regarding the application of double taxation conventions.

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

Revenue has updated the Capital Acquisitions Tax (CAT) Manual which provides an overview of the various exemptions from CAT. The updated guidance includes: Clarification that the small gift exemption may apply where a gift becomes an inheritance by reason of the death of the disponer within 2 years of the date of the gift. Amendment regarding the exemption for certain policies of insurance to follow the structure of the legislation. Further details on the qualifying conditions for the exemption of certain securities Further information is available in eBrief No.047/24.

Director-General Gerassimos Thomas has published an opinion piece on the Carbon Border Adjustment Mechanism (CBAM) and how carbon pricing supports the long-term investment needed for the green transition. In the article, he notes that since the introduction of the EU Emissions Trading System in 2005, there has been a 37 percent reduction in power and industrial emissions up to 2021, with EU GDP growing more than 50 percent in the same period. The CBAM is the next phase in the EU’s commitment to a greener, brighter future for Europe and its global trade partners.

Revenue has updated the Tax and Duty Manual regarding the Charitable Tax Exemption following the changes announced in Finance (No.2) Act 2023. The updated guidance confirms that: The tax exemption available under section 208 TCA 1997 is extended to include professional services income of a charity; and Revenue will withdraw the charitable tax exemption from the date in which the charity is no longer eligible, where withdrawn, Revenue will notify the Charities Regulator. The updated guidance also addresses applications for the tax exemption under section 208A TCA 1997 by overseas charities and under section 209 TCA 1997 for certain bodies established for the promotion of human rights.

The Bahamas, Belize, Seychelles, and Turks and Caicos Islands have all been removed from the EU list of non-cooperative jurisdictions, following agreement by Member States. While the Bahamas and Turks and Caicos Islands have been fully delisted, Belize and Seychelles have been moved from Annex I to Annex II (pending the results of a supplementary review). This is another important milestone in the Union’s ongoing efforts to promote tax transparency.

Revenue has updated the Tax and Duty Manual to reflect the increase in the employee (PAYE) tax credit to €1,875 for 2024 (from €1,775 in 2023) as provided for in Finance Act 2023, together with a new table to show the credit amount for prior years. 

Revenue has updated the Tax and Duty Manual regarding payments to property owners under the Repair and Leasing Scheme, which was introduced to bring vacant properties into social housing use.  The updated guidance clarifies that the scheme includes both a direct lease agreement and a rental availability agreement and, while both a local authority and an approved housing body (AHB) can enter into a direct lease agreement, only a local authority can enter into a rental availability agreement.  Further clarifications are also provided in relation to the amounts that may be reimbursed under the repair and leasing scheme.  References to the Home Renovation Incentive have been removed. Under the scheme, if a vacant property is suitable for social housing, the cost of necessary repairs is paid by the local authority or an approved housing body (AHB). The owner then leases the property to the local authority or AHB, who will make it available for social housing. The property owner receives an agreed lease payment from the local authority or AHB and the value of the repairs is gradually offset against this lease payment over the period specified in the lease.

Revenue has updated the Stamp Duty Manual which provides guidance on the stamp duty relief, under section 81AA SDCA 1999, in respect of certain transfers of agricultural land to young trained farmers. The manual has been updated to clarify the circumstances in which the relief can apply where the land is conveyed or transferred into joint ownership.  The updated guidance also addresses the application of limit on the relief in certain circumstances including where the land has been acquired by a young trained farmer and their spouse/civil partner who is not a young trained farmer.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. We also take this opportunity to remind you that HMRC is currently conducting an exercise in which it is asking members of the forum to confirm they wish to continue to as a registered user.   All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

Revenue has updated the Tax and Duty Manual for Remote Working Relief. The manual now reflects that payments to employees of the remote working daily allowance of up to €3.20 must be reported by employers under the Enhanced Reporting Requirements (ERR) which came into effect on 1 January 2024.  In addition, the updated guidance confirms that the remote working daily allowance applies to directors, including proprietary directors, where the director has incurred and defrayed relevant expenses ‘out of’ the relevant emoluments, that are subject to tax under the PAYE system, and all other conditions must be satisfied.