Other news in brief

In a Written Ministerial Statement, the Government has confirmed that L-Day (or Legislation Day) will be on 20 July 2022. On this day draft clauses for the next Finance Bill will be published. The announcement confirms that it “will largely cover pre-announced policy changes” but this was published prior to the resignation of Rishi Sunak as Chancellor of the Exchequer and it is unclear at the time of writing if this will have any impact on what is included. Assuming the Government’s plans remain unchanged, the measures published are likely to include legislation to implement the BEPS 2.0 Pillar Two rules in the UK, to introduce new transfer pricing documentation requirements and to reform Research & Development (R&D) tax relief amongst others. Commentary on the L-Day announcements will be included in the next edition of Tax Matters Digest.

In April 2022 the Government announced next steps for its FinTech Sector Strategy, including further exploring the taxation of cryptoassets. HMRC have now published a consultation on possible changes to the tax treatment of cryptoasset loans and staking in the context of decentralised finance (DeFi). In particular, the Government is interested in determining whether administrative burdens and costs could be reduced for taxpayers engaging in this activity, and whether the tax treatment can be better aligned with the underlying economics of the transactions involved. The Government is considering three policy options for reform: (i) including crypotassets in the existing repo and/or stock lending rules; (ii) new legislation specifically for DeFi lending and staking that follows the principles of the repo and stock lending rules; or (iii) a ‘no gain no loss’ treatment. The consultation will close on 31 August 2022.

The Department for Transport has published the Government’s response to the Seafarers' Wages Bill Consultation (see our earlier coverage), and a nine-point plan for seafarer employment protections and welfare. In summary, the Government proposes that seafarers on services that call at UK ports at least once every 72 hours on average throughout the year be paid at least an amount equivalent to the National Minimum Wage (the ‘NMWe’) when in UK waters. There will be no exemptions for specific vessel types. How to calculate the NMWe will be set out in regulations. Access to UK ports will be conditional on service operators declaring to the relevant Statutory Harbour Authorities (SHAs) that relevant seafarers are paid at least the NMWe. SHAs will be able to impose surcharges for failures to make these declarations and, in certain circumstances, suspend port access. The Maritime and Coastguard Agency will enforce the new legislation through a combination of risk-based, intelligence-led, and random spot checks. HMRC will be asked to devote National Minimum Wage enforcement resource to the maritime sector. The new legislation, which will be drafted so as not to contradict existing obligations under the Maritime Labour Convention, will be introduced during the third Parliamentary session.