Technical News


Please see below various updates from HMRC in respect of import/export issues:

HMRC is aware that some customers may have paid voluntary Class 2 National Insurance contributions (NICs) even though they have deferred filing their 2019-20 SA return until after 31 January 2021.

HMRC have provided us, as members of the Trust and Estates Agents Advisory Group, with an update on operational procedures relating to Clearance requests and IHT calculations.

HMRC can agree time to pay arrangements with businesses and individuals that cannot pay their tax on time because of COVID-19.

The 5th Anti-Money Laundering Directive (5MLD) extends the requirement to register on the Trust Registration Service (TRS) to many non-tax paying trusts that are currently excluded. Following a regular meeting with HMRC on 11 March attended by CIOT and ATT representatives on the implementation of the new version of the TRS, HMRC have announced that:

HMRC have advised CIOT that they are sending letters and issuing protective assessments over the next few weeks relating to offshore tax liabilities. 

CIOT, together with other professional bodies, has been discussing with HMRC the availability of the inheritance tax (IHT) spouse exemption in relation to assets held in a trust that are treated as beneficially owned by the settlor as a result of the reservation of benefit rules. 

HMRC have recently sent an email to people who claimed a grant under the SEISS but also told HMRC on their tax return that they stopped trading during either the tax year 2018/19 or 2019/20. This means that they were potentially ineligible for the scheme and may need to repay the money they received.  The email asks the recipient to take action by 22 March 2021 – either to contact HMRC to provide evidence if the person is still trading or to repay the grant if they are no longer trading. If no action is taken, HMRC will prevent the person from making any further SEISS claims.

HMRC’s Wealthy External Forum have issued a briefing to forum members about One to Many educational letters being sent to taxpayers dealt with by HMRC Wealthy who were not previously domiciled in the UK under common law and have become deemed UK domiciled for tax purposes under the legislation introduced in Finance Act 2017.