Last week, Ireland joined its international partners in welcoming the new international standard, developed by the OECD, on the automatic exchange of crypto information between tax authorities. The Crypto Asset Reporting Framework is being delivered within the EU through an amendment to the Directive on Administrative Co-Operation.   A publication by the Irish government states that “Ireland is already a recognised global leader in exchange of information and today marks an important staging post which reinforces Ireland's commitment to best international practice in tax transparency.”  Read the joint statement.  

Revenue has updated the Help to Buy – Summary Guide for Applicants to reflect changes to the Help-to-Buy (HTB) scheme introduced in Budget 2024 to enhance its compatibility with the Local Authority Affordable Purchase (LAAP) scheme. The changes take effect from 11 October 2023 and apply to HTB applicants availing of the LAAP scheme, who have signed a purchase contract on or after 11 October 2023. The updated guide includes the addition of new screenshots to demonstrate the steps involved in making a HTB claim.

Last week the Institute was represented at meetings in London of the UK Domestic Advisory Group (“DAG”), and at the annual joint UK and EU DAG meeting. After the joint meeting with the EU, a statement was issued by the UK and EU DAG’s setting out the matters discussed in more detail. On day two, representatives from both DAGs and from civil society were present at the annual Civil Society forum which provided an opportunity to feedback to representatives of the UK Government and the European Commission on key issues and concerns in implementing the Trade and Co-operation agreement.  The UK DAG is conducting its work via the following sub-groups each of which aims to publish on GOV.UK an update on key issues being discussed in the near future:-  Business and Labour Mobility;  Trade and Customs;  Regulatory Cooperation and Level Playing Field;  Energy and Climate Change; and  Nations and Regions.  Chartered Accountants Ireland participates in the Nations and Regions sub-group and was in attendance at the most recent meeting of this sub-group which took place in Edinburgh on Friday 10 November. During this meeting, attendees heard from Dimitris Dimitriadis, President of the European Economic and Social Committee’s External Relations Section as well as Irene Oldfather Vice-Chair of the UK DAG and Chair of the Sottish Advisory Forum on Europe. Broadly, concerns about youth mobility, environmental targets and the need for clearer guidance on business and economic issues were heard.    During the UK DAG meeting, attendees heard from Professor Anand Menon (UK in a Changing Europe) about the 2026 TCA review process and what that might look like given the potential for a change in UK Government after the next election. Sir Oliver Heald, Leader of the Delegation and Co-Chair of the UK-EU Parliamentary Partnership Assembly, was also in attendance and listened to various concerns from the UK DAG’s sub-groups.  Last week’s meetings in London took place in the grand surroundings of Lancaster House (see photo) which has been used in previous series of Netflix’s The Crown and which also features in the final series starting later this week. The UK Government’s wine cellars are also located at Lancaster House. 

With effect from 1 January 2024, Council Directive (EU) 2021/514 (DAC7) obliges certain platform operators to collect and automatically report information on certain sellers using their platform to earn consideration. As previously reported, platform operators must register with Revenue for the purpose of DAC7 by 30 November 2023. Revenue has published a new Tax and Duty Manual which provides general guidance on how to register for the reporting obligations in Ireland.

The Parliamentary Budget Office (PBO) has published a briefing paper on Budgetary Issues in the Finance (No.2) Bill 2023. The paper provides an analysis of measures contained in the Finance Bill (No.2) 2023 that the PBO believes could have a budgetary impact, and includes an overview of these measures, including information on possible cost, policy background and policy impact. Where possible, the PBO has endeavoured to provide information on the cost or yield of a measure or a policy change as estimated by the Department of Finance. Amendments to the Finance Bill arising out of last week’s Committee Stage are due for consideration at Report Stage the week commencing Monday 20 November. The briefing paper is based on the Bill as published and does not account for forthcoming amendments.

In early October, the Institute responded to the House of Lords Finance Bill Sub-Committee’s inquiry into draft Finance Bill 2023/24. As the Committee has now accepted this as evidence, the submission is available to read in the Tax Representations section of our website. The Institute’s submission was focused on two specific areas of concern in the draft Finance Bill:- The proposal to restrict the geographical scope of agricultural property relief and woodlands relief for inheritance tax to UK land and property only from 6 April 2024 – in August the Institute wrote to the Financial Secretary to the Treasury on the same issue; and  The proposal to potentially merge the UK’s SME and “large” company R&D tax relief regimes from 1 April 2024.    You can read the Institute’s recommendations in relation to both of these areas in the submission. 

Revenue has published an updated Tax and Duty Manual which provides guidance regarding returns by employers in relation to reportable benefits.   As previously reported, from 1 January 2024, employers will be required to report to Revenue the payment of travel and subsistence, the remote working allowance, and benefits provided under the small benefit exemption at the time or before the payment is made.  While the Institute notes the publication of guidance for employers regarding Enhanced Reporting Requirements, it remains concerned with the short timeframe given to employers to implement the measures and other matters set out in a letter to the Minister for Finance last month.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The latest Trader Support Service bulletin is also available in addition to the most recent Cabinet Office Borders bulletin which recently returned from a break. The Minister of State has written to the Chair of the House of Lords Protocol Sub-Committee providing an update the on the implementation of the Windsor Framework (“WF”) and this Committee has recently launched a new inquiry into regulatory divergence and the WF. Miscellaneous updated guidance etc.   The following updated guidance, and publications relevant to EU exit are available:-  Check if a business holds Authorised Economic Operator status;  Apply to use Simplified Import VAT Accounting;  CDS Declaration Completion Instructions for Exports;  Split consignments: Tariff classification and import procedures;  Known error workarounds for the Customs Declaration Service (CDS);  Apply for an Advance Tariff Ruling;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS);  Customs Declaration Completion Requirements for The Northern Ireland Protocol;  Customs Declaration Service (CDS) waiver codes for imports replacing 999L;  Authorisation type codes for Data Element 3/39 of the Customs Declaration Service; and Split consignments: Tariff classification and import procedures.

The Finance (No.2) Bill 2023 as amended in Committee Stage has been published. The amendments include draft legislation for the exemption from leasing of farmland and a new capital gains tax relief for investment in innovative enterprises (angel investors). Section 664 TCA 1997 provides a relief from income tax from leasing of farmland. The proposed amendment will impose a 7-year holding requirement in respect of purchases of farmland on or after 1 January 2024, thereby restricting the availability of the income tax relief so that it does not become immediately available to such purchasers of farmland. The new capital gains tax relief for angel investors is to attract investment for Irish SMEs. It will allow early-stage investors avail of a reduced rate of capital gains tax, where the qualifying investment has been held for a minimum of three years prior to disposal. There is a lifetime limit of €3 million on gains that may avail of the reduced rate. The Report Stage of the Bill is scheduled for 21 and 22 November 2023. We will keep you updated in our weekly newsletter.

HMRC recently continued its communication campaign on Pillar 2. In the UK, Pillar 2 will have effect in respect of in-scope groups’ accounting periods beginning on or after 31 December 2023. Letters to businesses are being sent to the Large Business (“LB”) population in addition to Wealthy and Mid-sized Business (“WMB”) taxpayers. The continuation of the communication campaign also includes letters to agent representatives, and articles in both the November 2023 Agent Update and HMRC Stakeholder Digest.   According to HMRC, steps have been taken to expand the avenues which correspondence is being issued to and HMRC is also encouraging potentially affected taxpayers to sign up to receive digital correspondence in future if they have not already done so.  The specific activity being undertaken commenced at the end of last month and is as follows:-  From Monday 30 October, letters began to issue to LB taxpayers that had not signed up to receive email updates;  From Friday 3 November, a bulk email was then issued to LB and WMB taxpayers, and to agents and representatives bodies who had signed up to receive email updates;  From Monday 6 November, letters began to issue to any remaining WMB taxpayers who had not previously signed up. 

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.