VALUE ADDED TAX
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.
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
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.
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
The flat rate VAT scheme
can save some traders
money and administration
Take advice on the
right category for your