Baker & McKenzie Highlights UK Tax Developments
Firm Nieuws
4 July 2012
Zurich, Switzerland, 4 July 2012 - Within the framework of the regular business briefings, Partners Stephanie Jarrett (Geneva) and Lyubomir Georgiev (Zurich) provided insights and highlights on UK tax developments.
Lyubo explained the proposed criteria under the statutory definition of UK tax residence reflected in the consultation issued on 21 June 2012 by HM Treasury. Days of presence will be a key factor but also whether the person has been a UK resident in the most recent tax years as well as the existence of family ties, full-time work and accommodation availability in the UK.
Stephanie provided an update on divorce-related issues from a UK perspective, including limitations on access of information by HMRC. Also mentioned were the uncertain status of Hastings Bass, the 15% stamp duty land tax on investments in UK residential property by non-natural persons, and the business investment relief for resident non-domiciliaries on the remittance basis.
Following that Lyubo discussed recent key international developments in which the UK is actively involved:
- The pending negotiations of an intergovernment agreement between HM Revenue and Customs and the US Internal Revenue Service on the implementation in the UK of the US Foreign Account Tax Compliance Act (FATCA);
- The pending ratification in the UK of the Agreement between the Switzerland and the UK on cooperation in the area of taxation through final withholding for the past and the future or automatic voluntary exchange of information on UK taxpayers;
- The clarifications to the Memorandum of Understanding relating to cooperation in tax matters between the UK and Liechtenstein, including the exclusion of criminal property (other than tax evasion) from the Liechtenstein Disclosure Facility (LDF) and the availability of a single charge rate for 2010-11 tax year;
- The benefits of the double tax agreement signed by the UK and Liechtenstein.
The briefing concluded with highlights on the guidance published by HM Revenue and Customs on 12 June 2012 regarding the meaning of beneficial ownership in double tax treaties focusing on who has the full privilege directly to benefit from the income.
For any questions about this press release, please contact:
Stephanie Jarrett (
+41 22 707 9821)
Lyubomir Georgiev (
+41 44 384 1490)
Marnin Michaels (
+41 44 384 1208)