Proskauer Rose LLP (JD Supra United Kingdom)

The United Kingdom Financial Conduct Authority (“FCA”) has published a consultation on proposals relating to a new type of fund product to support investment in long-term, illiquid assets. The intention is that the Long Term Asset Fund (“LTAF”) will overcome issues for investors, particularly certain retail investors who have experienced barriers to investing in these sorts of products. The...

UK Case Law Developments - Tax avoidance motive did not prevent availability of share for share exchange treatment - In Euromoney Institutional Investor plc v HMRC, the FTT held that the share for share exchange treatment in section 135 TCGA 1992 applied despite the presence of a tax avoidance purpose.

On 19 April 2021, the Financial Conduct Authority (“FCA”) published the second out of three consultation papers on the implementation of the Investment Firms Prudential Regime (“IFPR”) (CP21/7). The IFPR is a new UK prudential regime for investment firms authorised under the Markets in Financial Instruments Directive (EU/2014/65) (“MiFID”) and will come into force from 1 January 2022. For further

Spring Budget and Tax Day - After months of speculation about the possibility that capital gains tax (CGT) rates would be increased in the Spring Budget, both it and the government’s follow up “Tax Day” on 23 March passed without any announcement on the future of CGT (or much else of immediate note).

UK Case Law Developments - EIS relief not available for shares carrying preferential rights - The Upper Tribunal (UT) in Foojit v HMRC dismissed the taxpayer’s appeal against the First-tier Tribunal’s (FTT’s) decision (as reported in our November 2019 UK Tax Round Up) and agreed with the FTT that enterprise investment scheme (EIS) relief was not available for a class of shares owing to...

On 6 January 2021, the HM Treasury published the Short Selling (Notification Thresholds) Regulations 2021 (the “Regulations”). The FCA has updated its webpage on the notification and disclosure of net short positions to include an update in respect of the same.

31 December - The Brexit Transitional Period (pursuant to which the UK stayed in the Single Market and European Customs Union came to an end. The FCA updated its Brexit webpages to remind firms of the potential impact this will have.

COVID-19 Developments - Tax exemptions for coronavirus antigen costs - Draft regulations providing for employee and employer national insurance contribution (NIC) exemptions from payments made to employees to cover the cost of a coronavirus antigen test (whether an advance payment or a reimbursement) have been laid before Parliament in respect of tests taken between 25 January 2021 and 5...

On 14 December 2020, the Financial Conduct Authority (“FCA”) published the first out of three consultation papers on the implementation of the Investment Firms Prudential Regime (“IFPR”) (CP20/24) in relation to a new UK prudential regime for investment firms authorised under the Markets in Financial Instruments Directive (EU/2014/65) (“MiFID”).

UK COVID-19 Developments - Extension of support for employed and self-employed workers - On 5 November, the UK Chancellor announced the extension of the Coronavirus Job Retention Scheme (or furlough scheme) to the end of March 2021 (with a review in January 2021). He also announced that the Self-Employment Income Support Scheme (SEISS) grant for the self-employed will be 80% of average...

EEA Firms and funds relying on EEA passporting to do business in the UK should act now if they want to continue carrying on business in the UK on the same basis into 2021.

On 16 November 2020, the United Kingdom Financial Conduct Authority (“FCA”) published a statement in conjunction with HM Treasury, Prudential Regulation Authority (“PRA”) providing an update on timelines for introducing the UK’s Investment Firms Prudential Regime (the “IFPR”) and the implementation of the reforms which provide the UK equivalent to the outstanding elements of the second EU Capital

UK COVID-19 Developments - UK Prime Minister’s statement on COVID-19 - On 31 October, the Prime Minister announced a number of measures designed to slow down the spread of COVID-19 to last for four weeks from 4 November and including the closure of non-essential retail and most hospitality businesses. Alongside these closures, it was announced that the employee furlough arrangements would

UK COVID-19 Developments - Budget Cancelled - The Government announced on 23rd September that the Budget scheduled for November would, as a result of the ongoing Covid-19 pandemic, now not take place.

HMRC has updated its guidance on the Coronavirus Job Retention Scheme (CJRS). The changes include the removal of parts of the guidance that related to the application of the CJRS up to 30 June 2020 and to update employers on changes to the CJRS from 1 August 2020.

UK COVID-19 Developments - Furlough not detrimental to EMI options held on 19 March 2020 - On 26 June, the government introduced a new provision into the Finance Bill that provides that the period during which an employee is furloughed will not count towards the determination of their “working time commitment” for the purpose of determining whether the EMI option conditions are breached...

Originally published on February 24, 2020. Updated as of July 1, 2020. The UK senior managers and certification regime ("SMCR") overhauled the accountability regime for individuals working in UK financial services firms and has been in force for just over two months now. The regime applied to all FCA solo-regulated firms on 9 December 2019, but for most firms, there is still work to be done....

On 23 June 2020, the UK Financial Conduct Authority (“FCA”) published a discussion paper (“DP 20/2”) in relation to a new UK prudential regime for investment firms authorised under the Markets in Financial Instruments Directive 2014/65/EU (“MiFID”). Purpose of the proposed new regime - DP20/2 has been published by the FCA following the publication of the Investment Firm Directive and...

On 23 June 2020, the UK Financial Conduct Authority (“FCA”) published a discussion paper (“DP 20/2”) in relation to a new UK prudential regime for investment firms authorised under the Markets in Financial Instruments Directive 2014/65/EU (“MiFID”). Purpose of the proposed new regime - DP20/2 has been published by the FCA following the publication of the Investment Firm Directive and...

UK COVID-19 developments - Proposed deferral of DAC6 and DAC2 - The European Commission has published a draft directive proposing a three month delay to the deadlines for certain information disclosures under the EU Directives relating to the disclosure of tax information known as DAC6 and DAC2. The aim is to ease administrative burdens on businesses during the COVID-19 crisis.

Temporary changes to the statutory residence test for inbound COVID-19 workers - The UK Chancellor has written to the chair of the Treasury Select Committee outlining temporary changes to the statutory residence test (SRT) for those coming to the UK to work on COVID-19 related activity.

The UK Government has announced changes to the existing UK insolvency laws in order to ease pressure on companies and give them breathing space to trade through the COVID-19 pandemic. Exact timing for implementation of the changes is not clear and Parliament is in recess until 21 April 2020 but the changes will be amended "at…

UK General Tax Developments - HMRC updates to the private sector IR35 rules - On 7 February 2020, HMRC confirmed that the new private sector IR35 rules will only apply to payments made for services provided on or after 6 April 2020. Previously the rules would have applied to all payments on or after 6 April 2020 irrespective of when the services were carried out.

The UK senior managers and certification regime ("SMCR") overhauled the accountability regime for individuals working in UK financial services firms and has been in force for just over two months now. The regime applied to all FCA solo-regulated firms on 9 December 2019, but for most firms, there is still work to be done. In this memo, we summarize the main issues firms will need to focus on to...

Key developments in January 2020: 6 January - The Financial Conduct Authority ("FCA") published a letter, sent to the CEOs of wholesale general insurance (GI) firms, setting out its expectations for them to be proactive in tackling non-financial misconduct in the sector. This publication demonstrates the FCA's commitment towards corporate culture and individual behaviour as a priority area

At 11pm (local time) on 31 January 2020, the United Kingdom ("UK") will leave the European Union ("EU"), an event often referred to as "Brexit". A transitional period will take effect as of this date and will last until 31 December 2020 (the "Implementation Period"), unless extended. During this Implementation Period, EU law will continue to have the same effect in the UK as it currently does,...

UK General Tax Developments - Date set for next UK Budget - The first Budget of the new Conservative government will be held on Wednesday 11 March. There has been significant speculation that there will be a major overhaul (or even abolition) of entrepreneurs' relief in this Budget following the Chancellor's statement that the government would "review and reform" the regime and the Prime...

UK Case Developments - IR35 – no mutuality of obligation to create a contract of employment - RALC Consulting Ltd v HMRC has provided the First-tier Tribunal (FTT) with another opportunity to consider the application of the IR35 rules to a worker/client relationship. It has held that the relationship in question, between the contractor, his personal service company (PSC) and his end...

1 November - The Prudential Regulation Authority ("PRA") published a Dear CEO letter in relation to the reliability of regulatory returns. Firms are expected, if asked, to be able to respond promptly to a request from the PRA to...

UK Case Law Developments - More decisions on IR35 - This month has seen two more decisions on whether broadcast presenters providing their services to the BBC and ITV respectively would or would not have been employees had they provided their services directly rather than through personal service companies.