EU & Human Rights

 


A delegated legislation committee considered three statutory instruments that will be needed in the event of a ‘no deal’ Brexit:

The CIOT comments sent to HMT on the Stamp Duty Land Tax: non-UK resident surcharge consultation.

MPs got a final chance to amend this year’s Finance Bill with today’s report stage debate. Government amendments on intangible fixed assets and entrepreneurs’ relief were passed. A cross-party proposal to amend the Bill to hinder government preparations for a ‘no deal’ Brexit was passed. Another cross-party proposal for a review including consideration of the 2019 loan charge was accepted by the government.

Last week, the European Commission and UK Government published its draft Withdrawal Agreement on the UK’s withdrawal from the EU. Also published was a seven page political declaration on the UK’s vision of a future EU-UK relationship. Our initial thoughts on what this means for VAT, Customs and Excise duties are set out in this blog although further analysis is needed to do justice to the 585 page withdrawal agreement, plus explanatory notes.

The draft Withdrawal Agreement published on Wednesday sets out the terms of the UK’s exit from the EU, including a Protocol on Northern Ireland. It reflects agreement in principle between the UK and EU negotiating teams on the full legal text. The government intends to lay a final version of the agreement before Parliament once it is finalised. The outline of the Political Declaration on the future relationship sets out progress on the scope of the framework for the future relationship. Negotiations are ongoing to finalise the Political Declaration.

The CIOT comments sent to HMRC on Payment of CGT Exit Charges: Draft Finance Bill section 36 and Schedule 15.

The second reading of the Taxation (Cross-border Trade) Bill 2017-19 – a general debate on all aspects of the Bill - and all remaining stages took place in the House of Lords on 4 September. The Bill is a Supply Bill. The House of Lords cannot amend Supply Bills so committee stage, report stage and third reading are just formalities. As both Houses have agreed on the text of the Bill it now waits for the final stage of Royal Assent. A date for Royal Assent has yet to be set. This is a complex piece of legislation and consists of 58 clauses and nine schedules.

The CIOT comments on the EU Commission Recommendation relating to the corporate taxation of a significant digital presence.

The CIOT comments on the EU Proposal for a Council Directive on the common system of a digital services tax on revenues resulting from the provision of certain digital services.

The Government have been heavily defeated on a cross-party amendment to the EU (Withdrawal) Bill calling for them to explore a customs union with the EU, during report stage in the House of Lords.