Joint submission from the CIOT, ATT and ICAEW on the VAT treatment of transfers of a going concern (TOGC)

6 Jul 2017

If you have any questions, please get in touch with the Technical Team at scottech [at] ciot.org.uk.

Work progressing on Scottish replacement for APD

Revenue Scotland have commenced preparatory work for the implementation of the Scottish replacement for Air Passenger Duty (APD), which is scheduled to come into effect on 1 April 2018.

The Scottish Government launched a consultation in March this year, and an independent analysis of responses will be published on Friday 29 July. The next milestone on the path to implementing the replacement tax will be the introduction before the Scottish Parliament of the Scottish Government‚ s legislative proposals for the tax.

Building on the strong relationships established with HMRC to implement the first two devolved taxes, officials from Revenue Scotland visited the Air Passenger Duty operations and policy team in Uxbridge to understand the processes involved in administering the UK tax.=

Working with the Scottish Government‚ s APD stakeholder forum which was established in August 2015, Revenue Scotland established a working group, inviting operational representatives from commercial airline operators to help identify and appraise the options for the returns process that will be set out in the Business Case for the work.

There has been a clear appetite among airlines for a digital approach to collecting and managing the tax, which aligns with Revenue Scotland‚ s implementation of Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT). Revenue Scotland is committed to working with end users to ensure that the registration, returns and payment processes are as user-friendly as possible, and will welcome input from tax professionals on the development of our guidance and operational policies and processes.

Revenue Scotland‚ s Programme Manager Neil Ferguson said:

‚ Our close working relationship with Scottish Government and HMRC policy officials has provided us with the opportunity to establish contact with key stakeholders in the airline industry, and understand how UK APD has developed and is currently collected and managed. The next few months will see the programme structure take shape in line with the development of the legislation, after which we will start work on the systems and operational processes Revenue Scotland will need to have in place to collect and manage the replacement tax from 1 April 2018.‚

Technical Team