New Tax Credits

6 Jul 2017

Presented to Branches Forum February 2003. COUNCIL AND BRANCHES FORUM REPORT February 2003



We met with the Revenue in January to discuss our 2003 Budget representations.


Meeting with Revenue Policy International The CIOT attended a meeting with Revenue Policy International on 14 January along with other representative bodies. Amongst the matters discussed were the following.

The definition of, and attribution of profits to, PEs, where a separate meeting is being arranged to discuss the matter in more detail. OECD matters: October 2001 revision to model treaty, work on PEs and review of the effective management tie-breaker clause. The operation of S765 TA 1988 ‚ follow up to joint IR/PWC seminar of January 2002. Recent ECJ cases, where the Revenue were unwilling to discuss particular cases, but offered a general discussion at some future time, which offer is being taken up.

Human Rights The CIOT has discussed the issue of legal professional privilege internally and with the Revenue and is considering what further action can be taken.

The issue of prosecution under Scottish law is also being taken up with the Revenue.

Modernised Stamp Duty Patrick Cannon continues to represent the CIOT on the MSD Steering Committee.

Corporation tax reform John Cullinane has represented the CIOT at further meetings with the Revenue. Loans for unallowable purposes John Cullinane and John Lindsay have had further discussions with the Revenue. Consultation in land and property markets We have responded to the paper issued by the Office of the Deputy Prime Minister in November 2002.


Self-assessment (SA)

We have submitted a paper to the Revenue on improving Statements of Account under SA. We are attending meetings looking at various aspects of the SA system.

New Tax Credits We continue to be involved in the consultation process and have written to the Revenue again on various aspects of the new system.

Tax Law Rewrite Martin Benson has attended a meeting to discuss the changes to the vires for PAYE regulations. We have submitted written responses to two further batches of draft rewritten PAYE regulations.

Construction Industry Scheme Various members of the Personal Taxes Sub-committee have attended the continuing series of consultation meetings on the document ‚ Working Together for a New Scheme‚ . A written response is being considered for submission at the end of February.

Payroll Burdens

We continue to attend meetings on the implementation of Carter, now renamed Modernising PAYE Processes for Customers Programme (MPPCP).

Sandler Review

We have written to the Revenue about recommendations in the Sandler review on Medium and Long term Savings in the UK, and the proposed changes to the 5% withdrawal rule for certain life policies.

Mansworth v Jelley

We have written to the Revenue to request clarification of various aspects of the Technical Note issued by the Revenue on 8 January 2003.

Dependent subsidiaries

We have, in the past, pointed out to the Revenue the inequities in this legislation and we are now seeking to compile a list of examples where the two-year rule in particular, has operated unfairly. All members are asked to send any anonymised examples to the Technical Department.


Pension fund management

We have responded to the Customs and Excise consultation on pension fund management published in November 2002.

Compiled by Charles Barcroft, Colin Davis and Liz Lathwood ‚ Technical Officers, CIOT 18.2.2003

Technical Department 020 7235 9381