Revenue has updated the Stamp Duty Manual which provides guidance on the exemption from stamp duty on conveyances and transfers of property between associated companies. The exemption is provided under section 79 SDCA 1999 and is generally referred to as “associated companies relief”.  The manual has been updated to clarify the treatment that may apply in the case of a merger of a trade where the transferred property comprises trading assets, such as inventory, which are naturally utilised during the course of the trade within the two-year holding period (section 5.3.1). The manual has also been revised and refreshed throughout. 

Today we are issuing a final reminder that the deadline for employers to provide employees with their P60 for 2023/24, either on paper or electronically, is Friday 31 May 2024. The P60 summarises the employee’s total pay and deductions for the year.   By that date, employers must give a P60 to all employees on payroll who were working for them on the last day of the tax year (5 April 2024). If an employer is exempt from filing payroll online, copies of P60s can be ordered from HMRC. 

After the Spring Budget took place on Wednesday 6 March, the Spring Finance Bill 2024 (official title Finance (No. 2) Bill 2023-24) was published. The Bill reflects many of the tax measures announced as part of the Spring Budget. It is currently awaiting Royal Assent with many stages having taken place at speed last week due to the announcement of the General Election which will take place on Thursday 4 July. Parliament is to be dissolved later this week on Thursday 30 May. 

Revenue has updated the Stamp Duty Manual which provides guidance on the levy of stamp duty on authorised insurers. Section 125A SDCA 1999 provides for a stamp duty to be levied on certain health insurance contracts entered into between health insurers and their customers. The manual has been updated to confirm that only one levy is payable in relation to any 12-month period for each insured person (section 6). 

In this week’s miscellaneous updates, HMRC has published guidance on using an agent to claim certain VAT refunds and guidance is also available for legal representatives on the information they need to tell HMRC to calculate the lump sum death benefit charge. The latest Agent Update is available which covers a range of areas and issues and HMRC is conducting research on the Income Record Viewer. And finally, HMRC’s latest Stakeholder Digest has been released which includes news of an update to HMRC’s Agent Standard, the standard which sets out HMRC’s expectations of tax agents and advisers in their dealings with HMRC and an overview of the way HMRC tackles the minority of agents who do not meet the standard.  Using an agent to claim VAT refunds  HMRC has added a section on using an agent to the following guidance pages:  VAT refunds for constructing a new charity building;  VAT refunds for new builds if you’re a DIY housebuilder; and  VAT refunds for conversions if you're a DIY housebuilder.  Guidance on lump sum death benefits and the abolition of the lifetime allowance  HMRC has published guidance for legal representatives on the information they need to provide to HMRC when calculating the lump sum death benefit charge. The legal representative is responsible for checking whether a chargeable amount arose, and for reporting any chargeable excess over the lump sum death benefit allowance to HMRC.   HMRC has also published a set of over 100 FAQs on the abolition of the lifetime allowance for pension schemes.  Latest Agent Update  Agent update: issue 120 is available now. Get the latest guidance and information including: moving all exports to the Customs Declaration Service;  the enhanced check your State Pension forecast service is now available;  how you could benefit from joining the UK Internal Market Scheme;  Investment Zone tax reliefs guidance; and  reporting profits on a tax year basis from 2024/25.  Research on the Income Record Viewer  HMRC is conducting research on the Income Record Viewer (“IRV”), which is their online tool for agents to view client information, such as tax code, pay and tax details and employment history. HMRC has launched a survey on the tool with a view to making future improvements. Responses to the survey are anonymous.  

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Officer Borders bulletins are also available. We issue another reminder that there is now just over a week to go until the 4 June 2024 deadline for making all export declarations via the Customs Declarations Service and not CHIEF. And finally, the National Audit Office has published its report on implementing an effective trade border in the UK.  NAO report   The NAO’s report, which was recently published, focuses on the movement of goods across the border. It covers:  the operation of the border since the end of the transition period in December 2020 (Part One), the introduction of a full border control regime and future risks (Part Two), and challenges and opportunities relating to the management of the border (Part Three); and  the implementation of arrangements relating to Northern Ireland (Part Four).   The report is based on information available up to April 2024 and has not evaluated the implementation of the new import controls introduced from 30 April 2024.  The report concludes as follows:  “Leaving the EU customs union and single market created large-scale change in arrangements for the movement of goods across the UK border. More than three years after the end of the transition period, full import controls are still not in place. In addition, the model’s operation is still to be tested and the government may not be able to apply controls consistently as the controls are phased in.  The government’s new border target operating model should reduce costs to traders in comparison to its initial plans. However, repeated delays in implementing controls have meant ongoing uncertainty and an increase in risk, and the government and border stakeholders have also incurred unnecessary costs. This could have been avoided if the government had established a clearer vision of how the border should operate from the start and had taken a more strategic and planned approach to implementation.  The government’s 2025 UK Border Strategy includes ambitious plans to use technology and data to facilitate the passage of legitimate trade, while still identifying people and goods at risk. Most stakeholders agree with this overall approach. However, there is no timetable for achieving these ambitions, and the extended phasing of the introduction of full import controls has meant slower progress on other elements of the Strategy.  It is a considerable challenge to manage several large programmes involving multiple departments and external stakeholders, and we have highlighted the delivery risks. To improve its chances of success, the government needs strong mechanisms for delivery and accountability, a more realistic approach to digital transformation, and the means to assess and report on border performance to enable improvement over time.  The UK government and the EU have agreed arrangements to simplify the movement of goods from GB to NI, and the UK government and NI authorities are working to implement these. However, some details remain to be confirmed, including the operational implications of the government’s recent Safeguarding the Union Command Paper. If NI is to benefit from its unique position, the UK government must provide the clarity required to give businesses the confidence to invest in and trade with NI and provide sufficient support to the Northern Ireland Civil Service to help it effectively enact its new responsibilities.”  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Navigate the CDS Declaration Instructions for Imports;  List of customs training providers;  Goods Vehicle Movement Service codes for Data Element 5/23 of the Customs Declaration Service;  Apply to use simplified procedures for import or export (C&E48);  Report exports that arrived or left a UK port that were not notified in CDS;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Notices made under the Taxation (Cross-border Trade) Act 2018;  Country codes for the Customs Declaration Service;  Currency codes for Data Element 4/10 of the Customs Declaration Service;  CDS Declaration Completion Instructions for Imports; and  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service. 

Chartered Accountants Ireland welcomes this week’s announcement of a series of new measures to support early learning and childcare in the 2024/25 financial year in Northern Ireland. While the announcement marks an important step forward in supporting working parents as well as childcare providers themselves, the focus must now move toward developing a longer term strategy around securing more sustainable, affordable childcare in the region. The measures announced as part of this week’s package include: £7.1 million to expand and stabilise existing early years and childcare provision (programmes such as Sure Start, Pathway, Toybox and others including those focused on supporting children with special educational needs and disabilities). £2 million to address sustainability challenges and deliver a targeted business support scheme for childcare providers to assist those in financial difficulty and in areas where the demand for childcare exceeds supply. £5 million to begin the transition process for standardising the pre-school education programme to 22.5 hours for all children. This is expected to make an additional 2,200 full-time places available from September 2025. £9 million for a Northern Ireland Childcare Subsidy Scheme, with payments being made from September 2024. £2.5 million for a major data collection exercise to help with evaluation of these measures and inform the longer-term strategy.   A link to the official Ministerial Statement on the measures can be found here.

The Institute is aware of an email that was circulated, claiming to be from Chartered Accountants Ireland, and relating to the payment of member subscriptions. Please note this email was not sent by the Institute.  Below are a few tips to help members to spot phishing and other malicious emails.   Check the sender's email address and the domain name carefully. Phishing emails may come from addresses (a URL) that look similar to legitimate ones but have slight misspellings or additional characters. Institute emails will come from @charteredaccountants.ie  Scammers will often try to scare you into acting impulsively or urgently. Stop and think before acting, especially if an email is instructing you to act quickly.  Clicking a link in an email may direct you to a fake or malicious website. To stay safe, navigate yourself directly to the official website.  When you receive an email, stop and look for red flags. For example, emails that were sent outside of business hours, that contain spelling or grammatical errors, or unusual greetings or sign offs. Be cautious of unexpected opportunities. If something seems too good to be true, it probably is.    

On 23 May the Ulster Society hosted three economists, Maureen O’Reilly, Alan Bridle and Gareth Hetherington to deliver this year’s Economic Outlook. You can watch the presentation and download their presentations below: Watch the webinar on YouTube Economic Outlook 2024 - A Bridle slide deck 2024 Economic Update - G Hetherington slide deck 2024 Economic Update - M O'Reilly slide deck

Nicola Flannery outlines how organisations can navigate the expanding landscape of AI by focusing on ethical deployment, regulatory compliance, and building consumer trust for sustainable growth and innovation The true societal impact of Artificial Intelligence (AI) systems is yet to be fully realised. However, many already see AI as an engine for productivity and economic growth. As organisations compete to be the first to unlock and realise AI's full potential, governments and regulators worldwide have started the challenging task of creating legislation and regulatory frameworks around a constantly evolving technology. While there is still uncertainty around the risks due to AI technologies, some caution must be displayed to truly understand these, particularly where risks and harms to individuals may arise. In addition, privacy and security concerns are still the leading causes of limiting investments in AI-based solutions. However, with the current buzz around AI, even an organisation not currently considering it will be inclined to do so as the technologies evolve and mature. From this perspective, it is important to start thinking about AI use cases for your business and be ready to implement such solutions in a manner that builds customer confidence and aligns with the regulatory requirements. There is no doubt that companies that have an issue with how and where they deploy AI technologies will suffer from significant reputational damage. Trustworthy AI While the risks of AI technology do exist, there is also no doubt about the benefits that can be realised. However, the social and economic opportunities of AI may not be fully gained if the public’s concerns about the risks of AI outweigh their perception of the benefits. Therefore, it is crucial to ensure that AI technologies evolve and are deployed in ways that consumers and users can reasonably trust. Trustworthy AI, also known as ethical or responsible AI, has been proposed to mitigate the risks and enhance consumer/user trust in such systems. This is an umbrella term that consolidates several components which, according to the independent high-level expert group on AI established by the European Commission, consist of the premise that Trustworthy AI must be: lawful, respecting all applicable laws and regulations; ethical, respecting ethical principles and values; and robust, from a technical perspective, but also considering the social environment. Applying a human-centric, trustworthy AI-by-design approach will go a long way towards propelling innovative AI efforts while being aware of the risks that must be mitigated. Six dimensions for trustworthy AI Fair and impartial AI systems should make decisions that follow a consistent process and apply rules fairly. They should also incorporate internal and external checks to remove biases that might lead to discriminatory or differential outcomes, helping ensure results that are not merely technically correct but considerate of the social good. Transparent, documented and explainable AI systems may not operate as “black boxes”; all parties engaging with an AI should be informed that they are doing so and be able to inquire how and why the system is making decisions. Responsible and accountable The increasing complexity and autonomy of AI systems may obscure the ultimate responsibility and accountability of companies and people behind the decisions and actions of these systems; policies should be in place to clearly assign liability and help ensure that parties impacted by AI can seek appropriate recourse. Safe and secure Just as we currently depend on the consistent performance of professionals to help ensure that our daily activities are safe and healthy, we should be able to depend on equivalent or even greater reliability as we merge our systems with AI. Respectful of privacy As AI systems often rely on gathering large amounts of data to accomplish their tasks effectively, we should ensure that all data is collected appropriately, with full awareness and consent, and then securely deleted or otherwise protected from unsanctioned use. Robust and reliable As AI systems take greater control over more critical processes, the danger of cyberattacks and other harms expands significantly. Appropriate security measures should be implemented to help ensure the integrity and safety of the data and algorithms that drive AI. Nicola Flannery is Director of Data Privacy & Internet Regulation at Deloitte

CEOs are leveraging M&A for tech-driven growth and market expansion, embodying innovation and sustainability in a dynamic business landscape, explains Fergal McAleavey In the rapidly evolving business landscape of 2024, global CEOs continue to use mergers and acquisitions (M&A) to navigate innovation and transformation across their businesses.  The latest CEO Outlook Pulse Survey from EY shows businesses are engaging in M&A activity with renewed vigour, considering it a strategic support for addressing key priorities. The survey found that acquiring technology, new production capabilities and innovative startups, growing market share and accessing new geographies stood out as the top three strategic drivers for CEOs pursuing M&A. Irish M&A: growth and innovation In Ireland, the M&A landscape is particularly vibrant, with CEOs and investors showing a keen interest in a variety of transaction opportunities, from trade sales to private equity investment to strategic alliances. Ireland's thriving tech sector and business-friendly climate have fuelled a boom in deal-making, outpacing the UK and EU. This is likely to continue as companies pursue innovative technologies and seek to capitalise on the entrepreneurial energy of startups that have scaled. The strategic imperatives for Irish M&A are expected to align with global patterns, emphasising the acquisition of larger market shares, expansion into new markets, and the integration of advanced technology into existing operations. This is especially pertinent for Ireland, given its status as a European tech hub.  Ensuring strategic objectives are met CEOs are also signalling their readiness to streamline their portfolios, shedding assets to address ESG goals and refine their focus for the challenges ahead. Sustainability due diligence is playing an ever-increasing role in M&A transactions to assist buyers and sellers to ensure that those deals are aligned with their own corporate sustainability objectives. This strategic deal-making is not merely a short-term solution but is part of a broader, long-term vision to build resilience and adaptability for an unpredictable future. Irish CEOs' strategy With global funding markets more receptive in 2024, Irish acquirers may find it easier to secure financing for deals and may be the target of larger companies seeking to expand their geographic footprint or product offering. However, they must remain cautious of potential market tightening as political events unfold. For those looking to divest, the market's increasing appetite for acquisitions and the continued resurgence of private equity (PE) could provide favourable conditions. Nonetheless, the timing of PE's full-fledged return to the M&A space remains a little uncertain for large transactions as they await potential interest rate decreases, particularly in the Eurozone and the UK. Irish companies must stay attuned to shifts in monetary policy that could influence the M&A landscape.  To provide corporate sellers with more control over M&A transactions, particularly as a counter-measure to lengthy deal timelines that have become a feature of the M&A market in the last few years, time is well spent by those sellers preparing potential divestment assets for sale, including anticipating issues of particular relevance to likely buyers of those assets and identifying potential regulatory approval requirements that may add to longer deal timelines. Sell-side due diligence of prospective buyers can also be warranted to help flush out any potential roadblocks or delays that may arise from ever-increasing competition law, foreign direct investment and foreign state aid regime requirements.  The M&A momentum for the remaining months of 2024 is characterised by strategic foresight, adaptability, and a commitment to sustainability, as both global and Irish corporate leaders and investors navigate the complexities of a rapidly evolving business world. Fergal McAleavey is Partner of Corporate Finance – Strategy and Transactions at EY

The topic of whether a strong labour market delivers a good labour market is gaining significant attention, particularly since the Economy Minister has underscored the importance of ‘good jobs’ , says Martha Sargent The latest labour market statistics reveal a positive trend: between December and February 2024, unemployment stood at record lows (2.2%), and employment rates reached 71.7 percent, the highest level since the pandemic, indicating a potential improvement in job quality. For the first time since 2001, Northern Ireland did not have the highest level of economically inactive (26.7%) in the UK, with higher rates across Wales (28.1%) and the northeast (26.9%). The strength of the labour market creates a context in which we can challenge ourselves on whether the jobs we have are ‘good’. This has not always been the case. Since the pandemic and the Great Financial Crash, Northern Ireland’s focus has been the retention and recovery of jobs through downturns. In total, Northern Ireland lost over 40,000 jobs following these economic shocks. Encouragingly, as the recovery has taken hold, Northern Ireland reached peak levels of employment with over 904,000 jobs in 2022. So, what does this tell us about the quality of jobs available? Building a resilient economy, one that’s focused on jobs that suit the individual and promotes the overall economy, is a pressing need. This requires a strong emphasis on good, quality jobs—a concept that has now become a cornerstone of the Department for Economy's policy following the Economy Minister Conor Murphy’s  ‘economic vision’, which states “the promotion of good jobs” as one of four key objectives, along with promoting regional balance, raising productivity and reducing carbon emissions. This idea of ‘good jobs’ has also been promoted in the Resolution Foundation’s Creating a Good-Jobs Economy in the UK, in which it found that the British economy falls short on inequality metrics and that regional patterns in productivity play out in job quality. What makes a “good job”? For now, Northern Ireland does not have a clearly defined position on what a ‘good’ job is. What is clear is that it is a mix of areas such as pay, job satisfaction, HR policies, inclusivity, etc., and as such, is debated among policymakers, academics, and economists. In fact, the Department for Economy is currently debating such concepts as part of its measure for the ‘good jobs’ objective announced in the Minister’s economic vision. The Resolution Foundation has provided some insight into what makes a ‘good job’, such as work that pays well enough to allow for a reasonable living standard, stability and security, and opportunities for career progression. Northern Ireland’s New Decade New Approach 2020 includes decent working conditions, security of tenure and a worker's level of autonomy in the analysis, and more recently, the Nevin Economic Research Institute labelled ‘good jobs’ as being secure with strong employee-management relations. The body of research on ‘good jobs’ has highlighted that there is no clear path to tread in measuring or observing ‘good jobs’ for the Department of the Economy. However, Northern Ireland Statistics and Research Agency's Work Quality reports can provide some insight into the indicators that could be used. The latest data for some elements of consideration shows that 84.5 percent of all employee jobs are paid the real living wage or above; 96.9 percent are in secure employment; and 78.4 percent reported having job satisfaction. Thinking about ‘good jobs’ provides a more holistic approach to economic development. Improvements to well-being because of a ‘good job’ are expected to lead to wider economic benefits for society and the individual. Firms that place value on ‘good jobs’ should also experience higher levels of job satisfaction among workers, leading to an increase in productivity and a reduction in staff turnover and should attract more talent. A people-focused approach to ‘good jobs’ encourages security of employment, training and skills development to achieve the national skills gap challenge. As the old saying goes, ‘If you can measure it, you can manage it’. We should add ‘if you can define it, you can measure it’. Seeing the Department take steps toward defining and tracking ‘good jobs’ can only serve to strengthen the economy and add to Northern Ireland being viewed as a more attractive place to do business. Martha Sargent is Assistant Manager of Economic Advisory at Grant Thornton Northern Ireland