Zoe Andrews and Tanja Velling are joined by Arvind Ravichandran, Tax Partner at Cravath, to discuss the impact the proposed section 899 could have on US capital markets if enacted but how it is unlikely to be a big issue in practice.

They cover:

• The purpose and potential withdrawal from the Bill of Section 899, a proposed tax on foreign investors, in response to global tax developments
• How changes to the GILTI regime aim to more closely align U.S. tax policy with OECD standards
• The mix of permanent tax cuts and temporary “America First” measures included in the Bill
• Key negotiation points for Congress including the SALT cap, Medicaid reforms, and clean energy tax credits

Zoe Andrews and Tanja Velling discuss the Upper Tribunal’s decisions in Walkers Snack Foods on the VAT classification of “Sensations Poppadoms” and Rettig Heating Group, the judicial review of HMRC’s refusal of a late claim to set off a non-trading loan relationship deficit. They then discuss the Court of Appeal’s decision in Beard on the meaning of “dividends of a capital nature”.

The podcast also covers the UK government’s plans to modernise stamp taxes on shares, draft legislation for the reform of diverted profits tax, and transfer pricing and permanent establishment legislation, and a consultation on the potential changes to the process for resolving tax disputes.

It further discusses HMRC’s revised unallowable purpose guidance and international news including on a US tax change (the addition of a new Code section 899) that could significantly increase the tax cost of investing in the US for residents of countries that are deemed to impose “unfair” taxes.

Zoe Andrews and Tanja Velling discuss the First-tier Tribunal’s decisions in:

• Candy giving overpayment relief for an SDLT charge on the substantial performance of a contract that was later cancelled
• Refinitiv on the taxpayer’s successful application for a direction to issue closure notices
• Vaccine Research Limited Partnership where purposive construction was used to look at transactions in the round and conclude that certain licence fees were not “income”

They also cover the Court of Appeal’s decision in WTGIL on the scope of the VAT exemption for insurance intermediation.

The podcast further discusses the postponement of the consultation on the tax treatment of pre-development costs, HMRC’s revised guidance on the salaried members rules, legislation on territories recognised as having implemented a qualifying income inclusion rule or domestic minimum tax, and a few other UK domestic and international developments.