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

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Readers are again reminded that from 31 January 2025 an entry summary declaration (ENS) must be submitted for goods imported from the EU to Great Britain (GB). Also from the same date, HMRC has issued an email reminder about the new safety and security declarations required for all EU imports into GB. Entry summary declarations required for certain imports from 31 January 2025 HMRC is encouraging businesses involved in importing from the EU into GB to familiarise themselves with the new ENS requirements and has provided a summary of the key information. Detailed guidance is also available on GOV.UK. Miscellaneous guidance updates and publications How to claim a repayment of import duty and VAT if you've overpaid, Check if a business holds Authorised Economic Operator status, Make an entry summary declaration using the Import Control System 2, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, and Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS).

In this week’s miscellaneous updates, a new independent review of the loan charge has been announced by HMRC Treasury to bring the issue to a close. HMRC has issued a clarification about certain company tax returns submitted before 10 September 2024 and the Public Accounts Committee has recently opened an inquiry into the cost of the tax system. The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. New loan charge review Last week HM Treasury announced that a new independent review into the loan charge has been launched (23 January) when the Exchequer Secretary to the Treasury (XST) in a Written Ministerial Statement announced that Ray McCann, a former President of the Chartered Institute of Taxation, will lead the review. The review will examine the barriers preventing those who are subject to the loan charge reaching resolution with HMRC where they have not already settled and paid their tax liabilities in full. It will also recommend ways in which they can be encouraged to settle with HMRC. The reviewer is tasked with reporting and presenting their recommendations to the XST by Summer 2025. The terms of reference of the review set out the context, scope, and objectives of the independent review in more detail. The review team can be contacted at contact@lcreview2025.org.uk. The following publications provide more detail on the review: Independent review of the loan charge, and Loan charge review launched. Company tax returns submitted before 10 September 2024 On 10 September 2024, HMRC updated its guidance on how to complete a company tax return for accounting periods straddling 1 April 2023. This required companies to use box 326 (and not box 625) to report the number of related 51 percent group companies. HMRC has now clarified that returns submitted before 10 September 2024 do not need to be amended to reflect the updated guidance. New Public Accounts Committee (PAC) inquiry into the cost of the tax system The PAC is conducting an inquiry into the cost of the tax system. The PAC has recently been scrutinising HMRC’s customer services, underpinned by the National Audit Office (NAO) findings in 2024 that delivering responsive customer service continued to be one of HMRC’s biggest challenges. The NAO is also currently undertaking a project which will report on drivers of cost in the tax system which is expected to be published shortly in winter 2024/25. The study aims to help understand how elements of the tax system drive these costs, while establishing what progress HMRC has made in reducing costs and improving efficiency.  Based on the NAO report, the PAC expects to hear from senior HMRC officials on topics including:  What costs the UK tax system imposes on HMRC taxpayers and their intermediaries, Challenges in tackling the costliest parts of the system, and   How HMRC is taking opportunities to reduce costs.  The PAC has published the requirements for written evidence submissions as part of its inquiry and advises that it is unable to accept material as evidence that is published elsewhere. 

This was the key recommendation of the Institute’s Northern Ireland Tax Committee in its response to the HMRC consultation ‘The Tax Administration Framework Review - new ways to tackle non-compliance’. This consultation proposes several amendments to existing powers/potential new powers for HMRC including partial enquiries, amendments to the conditions for making certain claims, reform of Revenue Correction Notices and a power to require taxpayers to self-correct. The Committee also took the opportunity to highlight the lack of progress being made on tax simplification and made a number of recommendations to reduce tax complexity. The Committee’s key recommendations can be read on page 9 and in summary are as follows: A full review of HMRC’s existing powers, deterrents, and safeguards should be undertaken, and their associated administration processes, before any changes are made to existing powers, or any new powers are introduced, A range of measures should be undertaken to tackle tax complexity, which should as a minimum include the establishment of a Tax Simplification External Forum which reports annually to Parliament, HMRC should consider the possibility of requiring certain large employers to claim flat rate expenses on behalf of their employees via PAYE Real Time, HMRC should consider if a system could be implemented in the UK for claiming relief for employment expenses by enabling supporting evidence to be uploaded to the taxpayer’s Personal Tax Account with services also available to agents, The time limit within which a taxpayer can reject a Revenue Correction Notice should be longer and should not begin until it has been received by the taxpayer, HMRC should not introduce partial enquiries for the reasons cited in the submission. Overall, the Committee concluded that more broad ranging reform of HMRC’s compliance powers appears to be warranted similar to the different levels of compliance interventions in Ireland which include voluntary self-correction powers for non-deliberate errors by taxpayers.

The 2023/24 self-assessment online filing deadline is in just four days’ time on Friday 31 January 2025. The Institute is aware of the impact of Storm Eowyn and its aftermath on the ability of taxpayers and agents to file returns on time and will be flagging this to HMRC to ask it to take a pragmatic approach as the fallout from the storm continues into this week. We will update members in the news section of our website. On Thursday 23 January just the day before the Storm, HMRC was warning that 3.4 million returns remained unfiled. By way of reminder, taxpayers who provide HMRC with a reasonable excuse may avoid a penalty for filing late. However, 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.