PIMFA
What is Taxation?
PIMFA supports members on a wide range of tax-related requirements and developments to ensure they receive updates on proposed changes to existing regimes and remain compliant.
Areas of support include:
- International Tax Compliance
- Tax Simplification
- VAT Issues
- INTERNATIONAL TAX COMPLIANCE
The International Tax Compliance (Client Notification) Regulations came into force in 2016. HMRC guidance can be found here.
The Regulations place an obligation on UK Financial Institutions (FIs) to send a notification to relevant clients about certain tax matters. In particular, the regulation requires Fis to inform clients that there are opportunities to come forward about any overseas tax affairs and that penalties may apply if they do not do so.
- TAX SIMPLIFICATION
PIMFA works closely with members and the relevant authorities to support proposals to simplify tax requirements and increase efficiencies. Previous work and engagement with the Treasury has included support for:
- The removal of the quarter-up requirement for probate valuations (to bring it in line with the pension valuations, which returned to mid-price in 2015).
- Extension of the abolition of income tax withholding to all interest payments and the corresponding abolition of CT61 Returns.
- Clearer guidance in respect of Structured Products to ensure correct tax treatment of the income.
- Removal of the requirement to have to retrospectively amend a CTV when new information comes to light in the following tax year.
- Simplification of the Offshore Reportable Income requirement for collective investment funds.
- VAT ISSUES
PIMFA works closely with members to provide clarification and support for VAT issues affecting firms and their clients. In recent years, we have worked with HMRC to advocate in respect of the following issues:
VAT on Stock Transfer Fees
In September 2011, HMRC agreed with PIMFA that the charge for transferring stock (or arranging for the transfer of stock) from one nominee to another or from a nominee into the client’s own name (or vice versa) is a charge for a VAT exempt transaction in securities.
VAT and SIPPS
There remain concerns amongst PIMFA member firms about the inconsistency of HMRC VATFIN guidance in relation to VAT and Retail Investment Products. There are also concerns around the inconsistent application of existing guidance and about the unlevel playing field between insured and non-insured SIPPs.
TAX WORKING GROUP
The Tax Working Group was set up to explore British and International Tax changes, review queries raised by firms and to reach and document a common understanding of the tax implications.
If you would like to get involved, please email Kevin Sloane.
- INTERNATIONAL TAX COMPLIANCE
