In Irish news, we remind you of the approaching capital gains tax (CGT) payment deadline on Sunday 15 December and provide an update from the recent Tax Administration Liaison Committee (TALC) Collections meeting. In UK news, the deadline for agents to provide details of their agent codes is today Friday 6 December and in this week’s miscellaneous updates the latest Agent Update and the most recent News and Information Bulletin from HMRC contain important guidance on submitting self-assessment returns for 2023/24 where taxpayers are impacted by overlap relief and the transition year of basis period reform. In International news, the Commission has closed State aid investigations into the Fiat, Amazon and Starbucks tax rulings.  Ireland Readers are reminded that Sunday 15 December 2024 is the payment deadline for capital gains tax (CGT) liabilities arising in the period 1 January to 30 November 2024. We provide an update from the recent Tax Administration Liaison Committee (TALC) Collections meeting. UK The deadline for agents to provide details of their agent codes to HMRC is today, Friday 6 December. This week’s miscellaneous updates contains important guidance on submitting self-assessment returns for 2023/24 where taxpayers are impacted by overlap relief and the transition year of basis period reform. International The Commission has closed State aid investigations into the Fiat, Amazon and Starbucks tax rulings. 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.

In this article, the Thrive Wellbeing Hub looks at an epidemic that Ireland is facing and that is high levels of loneliness.  Many of us feel lonely from time to time. However, everyone’s experience of loneliness is different and personal. It is widely believed those who experience loneliness are those who may live alone or don’t have many friends or family around. Conversely, you can have lots of social connections, support and contact but still feel like you are alone. Loneliness can be compounded by stigma, but it is an epidemic and levels are prevalent, especially here in Ireland. A survey carried out by the European Commission’s Joint Research Centre (JRC) reported Ireland has the highest levels of loneliness in Europe with over 20% of respondents reporting feeling lonely. Another research report by Irish Life found that more than one in three adults in Ireland would describe themselves as lonely or isolated. Other studies and research have linked loneliness and isolation with serious health and wellbeing impacts. It has been suggested isolation; Increases the risk for all causes of premature death – rivalling smoking, obesity and inactivity. Increases the risk of dementia by 50%. Increases the risk of heart disease and stroke by 29% and 32% respectively.  Associated with higher rates of depression anxiety and suicide. Quality over Quantity Loneliness is a state of distress where there is a gap in desire for social connection and actual experiences of it. Humans are inherently social creatures that benefit greatly from quality relationships that make us feel safe, valued and feed our sense of purpose. Depending on your personality, the amount of social interaction needed varies from person to person. Loneliness is linked to the quality of relationships as opposed to the number of relationships. A lack of authenticity in our relationships can feed feelings of loneliness and even those in relationships, those with large friend groups or those surrounded by people daily can experience deep loneliness. Certain times or life events can also affect our levels of loneliness and isolation. For example, feeling lonely around Christmas or Valentine’s Day, or missing someone after a bereavement. A common measure for loneliness is the UCLA loneliness scale which asks individuals how often they feel the following; Feel they lack companionship Feel left out Feel in tune with the people around them Feel outgoing and friendly Feel that there are people they can turn to Dealing with it While an easy fix may seem elusive, there are lots of ways to deal with loneliness and isolation. A major hindrance in treating loneliness is many may feel reluctant to even acknowledge it or how it affects them. Feel the feelings It is important to know loneliness is a totally normal characteristic of life and it doesn’t mean there is something wrong with you. Everyone goes through lonely periods and feelings of isolation often come and go. Accept that you feel lonely presently and that is okay, and that there will be times when you won’t feel this way. It’s also important to remember you’re not the only person to feel this way. Sometimes, there is a comfort in knowing you’re not alone in your loneliness. Talk it out It is a difficult situation to open up about but there is no shame in feeling lonely. Finding someone to speak and open up to can really help in so many ways. It could be that you need or would prefer to talk to a professional – there are plenty of support services out there including the mental health support from Thrive which includes counselling and coaching. Company of 1 There is a huge difference between being alone and being lonely. Improving your relationship with yourself can help tremendously in combating feelings of loneliness. Use alone time to get in touch with yourself and to feel more comfortable with just yourself for company. Spending time alone can be liberating and can be a great way to wind down. You have the power to be your own best friend and liking your own company is a step towards better confidence. Distract Keeping yourself busy is a great way to improve your feelings of loneliness. Starting a hobby or delving into your interests can help you to feel less alone and a way to pass the time. It also allows room for connection if in a group setting and volunteering can help strengthen your sense of purpose and meaning. Always wanted to learn a new language? This could be the perfect time to commit. The Thrive Wellbeing Hub has many supports in place to help you tackle difficult feelings whether it loneliness or other emotional distress. Take a look at the supports we provide. You can contact the thrive wellbeing team by email at: thrive@charteredaccountants.ie or by phone: (+353) 86 0243294

UK  Recent communications with Insolvency Practitioners (IPs) authorised to take insolvency appointments in the UK have been advised of Council’s decision to revoke its status as a Recognised Professional Body (RPB) in the UK. This means that Chartered Accountants Ireland will not be authorising insolvency practitioners in the UK from 1st January 2025. The Professional Standards department has been communicating with these IPs to assist in the application process and to ensure a smooth transfer to an alternative RPB.   Ireland   In addition to UK insolvency regulation, Council has also decided to cease the proactive monitoring of members providing insolvency services in Ireland. Members will no longer be required to hold an Insolvency Practising Certificate (IPC) to take insolvency appointments in Ireland. To reflect the above policy change regarding IPCs, appropriate amendments have been made to the Institute’s Public Practice Regulations. Insolvency services will be included within the general definition of ‘accountancy services’ (therefore requiring the holding of a general ‘Practising Certificate’). This means that the Institute may review insolvency-related work of individual members at its discretion. These changes remain consistent with the provisions of section 633 of the Companies Act, 2014 which requires liquidators to hold a current practising certificate issued by a Prescribed Accountancy Body or specified other bodies. It is also consistent with the approach to insolvency regulation applied by other Prescribed Accountancy Bodies.

The Institute has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft “Climate-related risks and Other Uncertainties in the Financial Statements”. The Exposure Draft, which proposes eight examples illustrating how entities may apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements, was issued by the IASB in July 2024. While highlighting its support of the overall objectives of the IASB, as well as the usefulness of illustrative examples in helping entities report on areas of uncertainty, the Institute’s Financial Reporting Technical Committee noted some concerns in relation to the way in which some of the examples are drafted. In addition to this, the Institute called for more guidance and analysis relating to determining the level of adjustment required to terminal value and discount rates in relation to medium to long term impacts of climate risk. The Institute’s response can be read in full here. 

Typically, the festive season is a joyous occasion and a time for celebration, but it can equally be an extremely busy and demanding time that often puts extra pressure on us whether socially, financially or emotionally.  For some, it is a time where they acutely feel the loss of loved ones and feelings of loneliness. The festive period can affect your mental health in many ways and can bring up feelings of being overwhelmed, anxious, stressed. Our Thrive wellbeing team has compiled a list of tips to help you look after your mental health this Christmas. Realistic expectations It is easy to get carried away with the expectations of a perfect Christmas and everything that goes with it. However, this can cause disappointment and impact our self-esteem if it doesn’t turn out how we hoped. Be realistic about what you can expect from the festive season and avoid unhealthy comparisons with others. Create your own Christmas agenda for how you want to spend your time, focusing on a couple of things that are most important to you. Take a break The Christmas period can be the one time of year where we can truly take a break from the demands of day-to-day life. It is essential for our mental wellbeing to have some time-out to help prevent stress and feelings of being overwhelmed. Take this time to rest and restore your energy especially if you are feeling particularly drained. Make sure you set time aside to be by yourself if you need it and engage in activities that help you relax and unwind. Christmas is a time of compassion and giving, so why not indulge in some self-compassion and treat yourself. Reflect As the year draws to a close, you can quickly fall into the trap of thinking about everything you didn’t achieve and all those forgotten resolutions and goals. Try not to be too hard on yourself as you begin to reflect on the year that has passed. Accept the year for what it was and acknowledge the (big and small) things you have achieved and where you are now.   Say no Leading up to and during Christmas you can find yourself inundated with social engagements, invites, and being surrounded by people. If you are feeling uncomfortable or unsettled with the incoming invitations, the key is to give yourself permission to say no. You may want to limit your social interactions and while it is important to maintain some social connection it is imperative that you set clear boundaries with yourself on how much interaction you want to have. Balance your sense of social obligation against your need for self-care and time by yourself.   Healthy habits The temptation to overindulge is ever present at Christmas - the few extra tipples, lounging on the couch watching Christmas movies or over-doing it on the mince pies and rich food. Overindulging can cause your motivation levels to diminish and make you feel sluggish and not ‘yourself’. Alcohol may make you feel relaxed at first, but it is a depressant which can cause low mood and irritability. Strive to maintain some balance across the festive period if you can. Maintaining a relatively healthy diet and getting some exercise will give your mental health a much-needed boost. Get outdoors, wonder at the Christmas lights and decorations in your area or head out on a nature walk, it will do you a world of good. It can be quite difficult to maintain your usual routine over the holidays too. The best way to retain some semblance of routine and structure is keeping a healthy sleep pattern. Sleep is an essential component to not only positive mental health but also our physical health. Talk to someone The expectations of the festive season can take its toll and the pressure to have a good time can be overwhelming. How we feel can become all-consuming. If you are struggling it is important to talk to someone about how you are feeling. Your family and friends are your best support system, reach out to someone you feel comfortable disclosing your feelings to. If Christmas is a hard time for you, it's important to remember that you are not alone. Help is here if you need it. The Institute’s wellbeing hub, Thrive, provides an array of mental health supports to members and students. Whether you need a listening ear, wellbeing advice or professional counselling, we are here for you. You can contact the team by email at: thrive@charteredaccountants.ie or by phone: (+353) 86 0243294 Merry Christmas!

The Financial Reporting Council (FRC) has updated their suite of factsheets addressing FRS 102. These factsheets provide additional guidance to assist with the application of FRS 102 and include three new factsheets. Of particular interest to preparers and other stakeholders will be the new factsheets published which address the new accounting requirements for revenue recognition and lease accounting (effective for periods commencing on or after 1 January 2026). In addition to the new factsheets, five factsheets have been updated and two factsheets (which related specifically to the 2017 Triennial Review) have been withdrawn. Following the additions, updates and withdrawals, there are now eight staff factsheets in issue which are available on the FRC website; Factsheet 3 – Statement of cash flows Factsheet 4 – Financial instruments Factsheet 5 – Property: Fair value measurement Factsheet 6 – Business combinations Factsheet 7 – Transition to FRS 102 Factsheet 8 - Climate-related matters Factsheet 9 – Initial application of the Periodic Review 2024 amendments Factsheet 10 – Revenue from Contracts with Customers Factsheet 11 – Lease accounting for lessees

The European Commission has closed three in-depth State aid investigations into transfer pricing tax rulings granted by Luxembourg to Fiat and Amazon, and by the Netherlands to Starbucks. Following judgments by the EU Courts, the Commission found that the tax rulings did not grant the companies selective advantages.

Income-based tax incentives for R&D and innovation (IBTIs), sometimes referred to as patent boxes, innovation boxes, or intellectual property (IP) regimes, reduce the tax burden on the income that firms generate from their innovation activities. They have become part of many governments’ tax supports policy toolbox, with more than half of OECD countries offering IBTIs in 2023. This blog highlights five need-to knows about these incentives, the key categories of IBTIs, and their use, design, generosity and cost to governments and draws on the latest OECD evidence in this area.

Revenue has updated the Tax and Duty Manual which explains some of the key definitions and terms used in the close company provisions in Part 13 TCA 1997. The guidance now outlines how, in certain circumstances, taxpayers can seek agreement from Revenue that the close company legislation will not apply to an Irish resident company where the ultimate ownership and control of the company is widely dispersed among a large number of investors in funds operated through a limited partnership structure (paragraph 1). The details to be submitted to Revenue for the request to be considered are also outlined in the manual. With effect from 2 December 2024, these requests must be submitted via the Revenue Technical Service in accordance with the procedures set out in its guidelines.

Section 840A TCA 1997 restricts the ability of certain companies to claim a deduction for interest payable on certain connected party borrowings to fund the acquisition of certain assets from other group companies. Revenue has published a new Tax and Duty Manual which provides guidance on interest on loans to defray money applied for certain purposes under section 840A.

Revenue has warned that it did not issue SMS (text messages) seeking personal information from taxpayers in connection with a tax refund or seeking credit/debit card details. Revenue never sends emails or text messages requiring customers to send personal information via email, text or pop-up windows. Anyone who receives an email or text message purporting to be from Revenue and suspects it to be fraudulent or a scam should simply delete it. Anyone who is actually awaiting a tax refund should contact their local Revenue Office to check its status. Anyone who provided personal information in response to these fraudulent emails or text messages should contact their bank or credit card company immediately. Further information is available on Revenue’s security page.

Revenue has updated the Tax and Duty Manual regarding the taxation of provisions and accruals to reflect recent changes in Irish generally accepted accounting practice (FRS 100 – FRS 105) published in September 2024 and to provide for some miscellaneous minor revisions.