Brexit: DAC6 update

By Clive Gawthorpe
on 11 Jan 2021

One of the first actions after Brexit is that the UK Government has decided to remove nearly all the provisions of DAC6 from the UK tax legislation, this will reduce a significant tax compliance cost for some UK based businesses.

The main arrangements requiring to be disclosed to the UK tax authorities are around:

structures created to avoid disclosure of income and gains
structures created to disguise who the beneficial owners are

As an example of the second point, if the beneficial owners are unidentifiable say by the use of nominee shareholders or control is exercised indirectly rather than by formal ownership.

This is a significant reduction in tax compliance in the UK but international groups will still need to consider DAC6 and the reporting requirements as they are likely to have to make disclosures for their companies based in the European Union.

We have previously covered the DAC6 disclosure requirements in two separate blogs, which can be accessed here:

Are you ready for DAC6?

DAC6 reporting deadline extension