Other news in brief

Scottish Budget scheduled for 19 December 2023

Shona Robison, the Scottish Deputy First Minister and Cabinet Secretary for Finance, has confirmed that the 2024–25 Scottish Budget will be presented to the Scottish Parliament on 19 December 2023.

King’s Speech provides little insight into future tax policy

As expected, with an Autumn Statement looming, there was very little mention of tax in the King’s Speech at the State Opening of Parliament on 7 November 2023.  In the accompanying documents there were occasional references to existing tax policies and, as widely reported in the press, a commitment to explore the possibility of a new duty on vapes, but nothing else of significance was announced in the area of tax policy.

HMRC publish guidance to help companies see if their work qualifies as Research and Development for tax purposes

On 31 October 2023, HMRC published new ‘Guidelines for Compliance’ designed to help companies find out if their work qualifies as Research and Development (R&D) for tax purposes. This guidance is designed to be read alongside the Department for Science, Innovation and Technology (DSIT) guidelines and, according to HMRC, should help companies avoid common mistakes in R&D claims. Specifically the guidance is designed to aid taxpayers to: understand HMRC expectations of claimants; identify who is a competent professional able to judge if a project is seeking an advance in science or technology for the purposes of an R&D claim; find out if work qualifies as R&D for tax purposes; understand the meaning of ‘scientific or technological advance’ for the purposes of R&D claims; identify the scientific or technological uncertainty that the project is seeking to resolve; decide where the project begins and ends for the purposes of an R&D claim; and understand the evidence of a qualifying project HMRC may expect to see if they check the claim.

ECOFIN Council and European Commission endorse progress made by the Inclusive Framework in respect of Pillar One and Pillar Two

On 9 November 2023, during a meeting of the Economic and Financial Affairs Council of the EU (ECOFIN Council), EU Member States approved a statement as well as an accompanying statement from the European Commission reconfirming their political support for Pillar One and Pillar Two. In addition, the statements confirm the compatibility of the Safe Harbour rules and the Administrative Guidance that were agreed by the OECD/G20 Inclusive Framework (Inclusive Framework) with the EU Minimum Tax Directive. Read more in a Euro Tax Flash published by KPMG’s EU Tax Centre.