Weekly Tax Update: 31 July, 2013.

1 General news

1.1 GAAR Advisory Panel

A key element of the Government's proposals for the General Anti-Abuse Rule (GAAR) announced in 2012 was the creation of an independent Advisory Panel to approve HMRC's GAAR guidance, and to provide opinions on cases where HMRC considers the GAAR may apply. Interim appointments to the Advisory Panel were made to approve the guidance published with the Finance Bill.

The Commissioners for HMRC appointed Patrick Mears as Chair of the GAAR Advisory Panel on 15 April 2013.

Mr Mears led the process to recruit the members of the Advisory Panel and this has resulted in the Commissioners of HMRC appointing the following members of the Advisory Panel: Michael Hardwick, David Heaton, Brian Jackson, Sue Laing, Gary Shiels and Bob Wheatcroft.

1.2 Protocol for amending the double tax treaty on income tax and capital gains tax between the UK and India

The UK and India have entered into a new Protocol which amends the double tax treaty as regards income tax, CGT, corporation tax and Petroleum Revenue Tax (PRT).

The Protocol amends the Articles of the Convention relating to general definitions, fiscal domicile, dividends, partnerships, exchange of information, tax examinations abroad, assistance in the collection of taxes and limitation of benefits.

The Protocol will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures. It will take effect as follows:

1. in both States in the case of taxes withheld at source, in respect of amounts paid on or after the date on which the Protocol enters into force;

2. in the United Kingdom:

in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year next following that in which the Protocol enters into force; in respect of corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that in which the Protocol enters into force; in respect of PRT, for any chargeable period beginning on or after 1st January in the calendar year next following that in which the Protocol enters into force. c) in India, in respect of taxes levied for fiscal years beginning on or after the date on which the Protocol enters into force. The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.

www.legislation.gov.uk/ukdsi/2013/9780111101537/pdfs/ukdsi_9780111101537_en.pdf

2 IHT and trusts

2.1 Inheritance Tax guidance following Finance Act 2013

Following the Finance Bill 2013 receiving Royal Assent on 17 July 2013 HMRC Trusts & Estates has published guidance on...