Other news in brief

The OECD has published the 2022 edition of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. This is a consolidating edition, incorporating the revised guidance on the transactional profit split method and guidance on hard to value intangibles published in 2018. It also includes the OECD’s financial transactions transfer pricing guidance published in 2020. The new Guidelines are useful in bringing together these developments in a single volume. The approach of tax authorities to newly published versions of the Guidelines varies, but in practice many tax authorities, including HMRC, have applied these principles for some time.

The Public Bill Committee stage for Finance (No.2) Bill 2021-22 (here referred to as Finance Bill 2022) was completed on 11 January 2022, with amendments reported to the House. During the Public Bill Committee stage Government amendments to the provisions on notification of uncertain tax treatment and the asset holding company regime were agreed to. All other provisions were passed without amendment, including those relating to basis period reform. Next up are the Report stage and third reading, the date for which had not yet been announced at the time of writing. The Report stage is the final stage at which amendments can be made.

New detailed guidance has been published by HMRC on the UK Property Account, HMRC’s online service for reporting and paying Capital Gains Tax (CGT) on UK property. UK resident individuals have to report and pay any CGT due on the disposal of UK residential property. Similar rules apply for non-UK residents who directly or indirectly dispose of an interest in UK land. Finance Bill 2022 includes provisions to increase the time limit from 30 days to 60 days for disposals from 27 October 2021. The guidance covers practical issues and the interaction between reporting CGT on the UK Property Account and the Self-Assessment process. There are some practical issues with the reporting process to be considered, especially for UK trusts and estates who fall within the new reporting rules for disposals of UK residential property. Among these issues, is the need for a trust to register on the Trust Registration Service in advance of reporting a property disposal on the UK property account, which may bring forward the need to register.

Yael Selfin, Chief Economist at KPMG UK, comments on the latest labour market figures, stating “the labour market brushes off Omicron setback”.