Other news in brief

The Government has previously announced its intention to extend the definition of R&D for tax purposes to include pure mathematics. On 7 March 2023 the Department for Science, Innovation and Technology updated its ‘Guidelines on the meaning of research and development for tax purposes’ (previously known as the BEIS guidelines) to include guideline 15B which states: “Mathematical techniques are frequently used in science. From April 2023 mathematical advances in themselves are treated as science for the purposes of these Guidelines, whether or not they are advances in representing the nature and behaviour of the physical and material universe.” Then, on 10 March, The Research and Development (Prescribed Activities) Regulations 2023 were published. These Regulations revoke and replace the previous version (the Research and Development (Prescribed Activities) Regulations 2004) in order to update statutory references and refer to the latest iteration of the applicable guidelines.

On 8 March 2023 HMRC added an update to their web page which displays tax treaties and related documents between the UK and the Kyrgyz Republic. It confirms that the 2017 treaty is not yet in force but HMRC had previously stated on this page that the 2017 treaty was in force and effective in the UK from 1 January 2023. The update confirms that “This was an error as the agreement is not yet in force” and goes on to say “If you have relied on the agreement between 1 January 2023 and 8 March 2023, email taxtreaty.team@hmrc.gov.uk”.