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Cash pooling: HMRC guidance

Global Tax Update:March 2017/United Kingdom

HMRC have published guidance on the transfer pricing aspects of cash pooling arrangements. The guidance covers, amongst other things, the setting of appropriate interest rates, the sharing of benefits and the consequences of netting balances. (Global Tax Update:March 2017/United Kingdom)

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1. Cash pooling: HMRC guidance

HMRC have published guidance on the transfer pricing aspects of cash pooling arrangements. The guidance covers, amongst other things, the setting of appropriate interest rates, the sharing of benefits and the consequences of netting balances. See our special bulletin for more detail here.

2. Office of Tax Simplification progress report on stamp duty on paper transactions

The Office of Tax Simplification (OTS) has published a progress report on stamp duty on paper transactions following the Government's request that it look at how stamp duty is collected on share transactions. The paper concludes that the physical stamping process is significantly outdated. The report suggests that there could be a number of benefits if the system were digitised, including reducing costs for taxpayers and HMRC.

3. Upper Tribunal rules that recharge of insurance to taxi drivers is VAT exempt

Wheels Private Hire Ltd rented taxis to some of its drivers for £120 per week. It also obtained insurance which covered the drivers, and recharged the associated premium of £45 per week to any driver who did not arrange their own insurance. HMRC argued that a taxi management company could not supply exempt insurance (this was not a block policy as considered in Card Protection Plan) and viewed the insurance as being part of a single overall supply of the taxi. However, the Upper Tribunal has ruled in favour of Wheels.

 

>> Click for Japanese [HMRCガイダンス:キャッシュプーリング ほか] 

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