TaxPersonal TaxMore tinkering improves DTR rules

More tinkering improves DTR rules

Experts believe the now infamous double tax relief rules have been improved by further tinkering in this year's Budget.

However, they are still convinced the legislation is overcomplicated and that regulations issued today have left almost no time for consultation before they go live at the beginning of April.

The changes, the third set since DTR reform was announced in last year’s Budget were even lambasted by William Hague, the Tory leader, as a ‘triple taxation retreat’ during his response to the Budget in the House of Commons.

They mean overseas subsidiaries paying dividends to a UK based parent company will be able to ignore rogue high tax rates for the benefit of pooling for tax relief purposes.

Roger Muray, international tax partner at Ernst & Young, called the adjustment a ‘vey sensible change’ that companies would appreciate, but added: ‘What we have is something that is blindingly complicated because of a botched consultation.’ Others continued to call it ‘a fudge’.

Business will have until 19 March, just seven days, to let the Inland Revenue know their feelings about the regulations before the go-live date of 1 April.

Fears are now growing that a raft of amendments will be made at the very last moment making it even harder for businesses to prepare.

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