The 6th Directive (2018/822/EU) aiming to discourage the use of aggressive cross-border tax-planning agreements imposes a disclosure and reporting obligation on certain ‘intermediaries’ and taxpayers in regards to ‘cross-border arrangements’. The EU Directive was implemented in UK law on 9 January 2020.
On 9 January 2020, the International Tax Enforcement (Disclosable Arrangements) Regulations 2020, Statutory Instrument 2020 No. 25 (the Regulations) were made and will come into force on 1 July 2020.
But will it remain in force post-Brexit?
The Withdrawal Agreement of 29 January 2020 requires the UK to apply DAC6 as if it were a Member State until 31 December 2020. The transition period could even be extended.
The Chancellor of the Exchequer’s January 2020 report to Parliament on the Regulations (a requirement under section 84 (8) of the Finance Act 2019) indicated that once the transition period ends, the government may make transitional arrangements, amend or revoke the Regulations but indicated that it would make sure that the rules would work as intended.
However, as HMRC is committed to tackling aggressive tax arrangements, it is unlikely that the UK would make any material amendments to DAC6 in the near future.
We will monitor the situation closely and keep this page up to date with changes to the Regulations.