The UK’s transitional period out of the European Union officially ended on 31st December 2020. New rules were implemented on 1st January 2021, following the UK’s Free Trade Agreement with the EU.
Since leaving the EU, the UK no longer implements DAC 6, the European legislation for disclosing arrangements. Under UK law, arrangements must be reported to HMRC, if they fall under the OECD mandatory disclosure rules. Our article ‘DAC 6 has been replaced by OECD Mandatory Disclosure Rules following the Free Trade Agreement with the EU’ has further information regarding the new disclosure rules.
HMRC has opened their online portal to allow for any disclosures to be made by taxpayers and intermediaries. The first disclosures must be made by 31st January 2021, for arrangements which were made available/ready for implementation between 1st July 2020 and 31st December 2020.
The portal is open for taxpayers to make disclosures however, agents reporting on their clients behalf cannot do so as the facility is not yet available for them. Those who have disclosures to make are being urged to register now to ensure they are ready to report to HMRC when they are able to do so.