A&M Scotland Asset Manager Briefing Note: Volume 22
Introduction to Mìcheal Callan, Analyst at A&M Taxand Scotland
We are delighted to welcome Mìcheal Callan to our tax team in Glasgow.
Mìcheal has joined our team as an Analyst to support the Financial Investors Group.
Prior to joining A&M, Mìcheal undertook a bachelor’s degree in Accountancy with Finance at the University of Glasgow.
Key highlights from the UK Spring Statement 2022
The UK Chancellor, Rishi Sunak, introduced a new Tax Plan in his Spring Statement setting out his approach to taxation for the remainder of this Parliament.
The plan focuses on three key areas:
- Measures to help families and lower paid workers with the rising costs of living;
- Measures to boost investment, innovation and growth in the private sector; and
- “Sharing the proceeds of growth fairly”
Please refer to our “Spring Statement 2022: Rishi Sunak’s New Tax Plan and What it Means for UK Businesses” article for more information on the Spring Statement.
Update on the UK’s Qualifying Asset Holding Companies (“QAHC”) Regime
A new tax regime for QAHCs was introduced in the UK on 1 April 2022.
A key aim of the regime is to enhance the UK’s competitiveness as a location for asset management and investment funds by addressing the challenges that may lead companies to be located outside of the UK, commonly in Luxembourg because of its beneficial tax regime (Luxembourg has an extensive double tax treaty network and reliefs to ensure investment returns do not suffer material tax).
Some of our Asset Manager clients are now reviewing their investment holding structures and whether a QAHC could be an appropriate structure to hold investments.
For more information on QAHCs, Please refer to our article here.
Employment Related Securities ("ERS") reporting reminder for 6 July 2022
Following the end of the 2021/22 tax year on 05 April 2022, asset managers that have awarded carried interest and co-investment entitlements should consider whether they need to report these awards on the ERS annual return.
The ERS annual return involves a number of key tasks, including:
- Registering new plans or arrangements;
- Verifying or self-certifying the tax-advantaged plans in place; and
- Submitting annual returns with all reportable events (including nil returns).
All ERS annual returns should be filed with HM Revenue and Customs on or before 6 July 2022 for 2021/22tax year, with late filings resulting in an automatic penalty and potentially significant consequences for tax-advantaged plans.
If you need any assistance or if you are unsure whether you are required to file an ERS annual return for 2021/22, please do not hesitate to get in touch.
Please refer to our article for more information.
