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VAT registration and deregistration

The VAT registration threshold will increase from £82,000 to

£83,000, and the deregistration threshold will rise from £80,000

to £81,000, from 1 April 2016.

VAT fraud

The government will consult on a new penalty for participating

in VAT fraud.

To tackle online fraud in goods, HMRC will be given stronger

powers to direct the appointment of a VAT representative and

greater flexibility to seek security. HMRC will also be able to hold

an online marketplace jointly and severally liable for the unpaid

VAT of an overseas business that sells goods in the UK via the

online marketplace’s website. The government will continue to

engage with the EU and OECD to explore international solutions

to VAT fraud.


Related party rules – partnerships and transfers of

intangible assets

The related party rules will be amended so that partnerships

cannot be used in arrangements that seek to obtain intangible

assets tax relief for their corporate members in ways that are

contrary to the intention of the regime.

Loan relationships

The tax rules for company debt and derivative contracts will be

updated to ensure they interact correctly with new accounting

standards in various specific circumstances.

Deep in the money options

As previously announced, shares transferred to a clearance service

or depositary receipt issuer as a result of the exercise of an option

will be charged 1.5% stamp duty based on the higher of their

market value or the option strike price. This will target avoidance


16 MARCH 2016

page 14


The flat rate VAT scheme

can save some traders

money and administration


Take advice on the

right category for your