A bill to lay the foundations for a stand-alone, post-Brexit customs regime will help ensure “that goods can move smoothly and safely in and out of the UK, and that everyone pays the right tax,” the government said, a week after a parliamentary committee warned that failure to establish a Brexit-ready system would be catastrophic.
The 170-page taxation (cross-border trade) bill, formerly known as the customs bill, will allow the UK to set and collect its own duty on goods entering the country and to implement different outcomes of the Brexit negotiations, including an implementation period, HM Treasury and the Department for International Trade said in a joint release on November 21.
My news story for Tax Analysts, November 23 (paywall)
The “abuse of rights” principle against artificial VAT avoidance could be removed retrospectively by the UK’s Brexit bill as currently drafted, and the apparent error illustrates how the bill goes “beyond what seems necessary” to leave the European Union, according to the Chartered Institute of Taxation.
“The government has been clear that its intention is to provide legal continuity during Brexit by copying over the entire body of EU law onto the UK’s post-exit statute book. This is a sensible aim,” said Jeremy Woolf, chair of the CIOT’s EU and human rights subcommittee, in an October 25 release. “However, as currently drafted, it appears to us that this will not be the case …” Read more:
My news story for Tax Analysts, October 26 (paywall)
HMRC will review its guidance on a flat-rate scheme for VAT in the light of recent tribunal decisions, after a professional body warned that many business consultants are being overcharged, the department told Tax Analysts. Read more: My news story for Tax Notes (paywall) published by Tax Analysts.