With a no deal Brexit looking more and more likely, the Irish Government published a Brexit Omnibus Bill (‘Brexit Bill’) on 22nd February to prepare Ireland for what might be to come on 29 March 2019.
This Brexit Bill focuses on protecting Irish citizens, supporting businesses and jobs, and securing ongoing access to essential services and products. The Brexit Bill is wide ranging, crossing the remit of 9 government departments and consisting of 15 parts. Part 6 of the Brexit Bill provides for the modification of Income Tax, Capital Tax, Corporation Tax, Value Added Tax and Stamp Duty legislation. In the event of a no deal Brexit, the Brexit Bill aims to ensure continuity for businesses and citizens in relation to their current access to certain taxation measures including reliefs and allowances. We have summarised some of the key measures from Part 6 below;
- Group loss relief & start-up company relief – these provisions are amended to include UK resident companies
- R&D relief – qualifying the area extended for purposes of R&D tax credit claims to include the UK.
Value Added Tax (“VAT”)
- Postponed VAT accounting on imports – the introduction of postponed accounting for VAT on all imports allowing the inclusion of same in the VAT 3 return rather than payment at point of entry and subsequent reclaim. This will be available to all non-EU importers, including the UK.
- Section 56B VAT authorisations – changes to the conditions required to secure the authorisation that allows persons to receive qualifying goods and services at the zero rate of VAT. This includes a change that requires the 75% turnover test be met for 12 months prior to application for S56B authorisation, while the amendment also gives the Revenue Commissioners the power to cancel an authorisation where there are reasonable grounds to do so, and to provide for a penalty for failure to adhere to conditions of the scheme.
Capital Gains Tax
CGT relief on asset transfers – an extension to the provisions currently applying to a relevant member state to include the UK .
- Relief on asset transfers and mergers - section 80, which concerns the reconstructions or amalgamations of companies, amended to include UK-based companies where they merge with, or acquire, Irish based companies.
- Relief for UK based brokers & intermediaries - a relief from stamp duty for brokers & intermediaries acquiring stocks or marketable securities of Irish incorporated companies extended to UK brokers and intermediaries.
- Key Employee Engagement Programme Scheme – extended to ensure that entities established in the UK remain included in the scheme.
- EIIS Scheme relief for investments in corporate trades - extended to ensure that entities established in the UK remain included in the scheme.
- Artist exemption and sportsperson relief – amendments to the relevant definitions to ensure that UK residents remain included.
- Medical insurance relief – income tax to remain available for certain health insurance policies granted by insurers established in the UK.
Should you require any assistance on Brexit planning matters, in relation to a no deal Brexit or not, please contact Aidan or your usual RSM contact.