• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 3/14/2014

United Kingdom - Overpaid output VAT, REIT regulations 

March 14:  A summary of recent tax developments prepared by the KPMG member firm in the UK includes the following discussions:
  • A decision of the Court of Appeal, published 11 March 2014, examines the corporation tax treatment of value added tax (VAT) repayments that related to overpaid output tax on supplies made in the course of the trade. The Court of Appeal found that the “charge to tax” applied to all receipts.
  • The final version of REIT regulations include a UK REIT and an overseas equivalent of a UK REIT in the definition of “institutional investor” and amend the items to be taken into account in calculating a REIT's costs of debt finance.
  • Regulations amend the Unauthorised Unit Trust (Tax) Regulations 2013, and confirm that certain entities will not be treated as “unauthorised unit trusts” (UUT), and that UK corporate investors holding units in non-exempt UUTs will not be required to treat that investment as a creditor relationship.

Read a March 2014 report (PDF 880KB) prepared by the KPMG member firm in the UK: Weekly Tax Matters (14 March 2014)

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