United Kingdom: Tax

The UK Government has launched a consultation proposing significant changes to the withholding tax regime on interest payments to overseas lenders. The proposed reforms would shift from HMRC's current gatekeeping role to a self-assessment system where UK borrowers independently determine treaty relief eligibility, fundamentally altering compliance responsibilities and risk allocation in cross-border lending arrangements.

Tax Counsel Elizabeth Spencer shares insights from her career in tax law, discussing her diverse practice spanning transactions, advisory work, and contentious matters at McDermott Will & Emery. She reflects on the evolving nature of tax legislation and offers perspective on building expertise in this dynamic field.

HMRC has launched a consultation on simplifying treaty relief from withholding tax on interest payments made overseas, addressing longstanding administrative challenges in the current system. The consultation explores potential reforms including a self-assessment approach that would eliminate the need for prior HMRC direction, fundamentally changing how UK borrowers and overseas lenders navigate cross-border financing arrangements.

Family businesses face unique challenges when it comes to succession planning, from navigating complex family dynamics to ensuring business continuity across generations. Drawing on experience with high-profile disputes and successful transitions, this article explores practical strategies for avoiding conflicts and securing your family business's future through proactive planning, transparency, and professional guidance.

Recent changes to inheritance tax rules have narrowed the charity exemption, potentially affecting charitable gifts in Wills made for "general charitable purposes." Donor-advised funds offer a flexible, tax-efficient alternative that allows individuals to maintain philanthropic intent while adapting to evolving circumstances and involving future generations in charitable giving.

Irwin Mitchell provides comprehensive legal news, expert commentary, and industry insights across key sectors. The firm's latest Leading Litigator Report reveals that 69% of General Counsels now view litigation as either an operational necessity or strategic investment, examining how in-house legal teams are navigating alternative funding, AI adoption, and geopolitical influences while managing risk and controlling costs.

The Supreme Court has clarified how to determine whether LLP members have "significant influence" for tax purposes, establishing that qualifying influence must derive from legally enforceable rights traceable to the LLP agreement rather than informal power or strong performance. This landmark ruling provides a structured framework for assessing member status prospectively...

If you own farmland, there’s a good chance you’ve been approached — or will be approached — by a developer looking to use your land for a renewable energy project. Solar farms, wind turbines and battery storage facilities are all expanding rapidly across the UK, and developers need land.

The First-tier Tribunal examined whether HMRC could retrospectively impose late payment penalties and surcharges after reallocating tax payments made by a taxpayer who had entered into unsuccessful tax avoidance schemes. The case centered on the critical question of whether tax liability should be assessed at a specific point in time or whether subsequent payment reallocations could create retroactive late payment scenarios.

When HMRC issued an information notice demanding a UK subsidiary's US parent company financial statements in a transfer pricing enquiry, the First-tier Tribunal had to determine whether such documents were reasonably required and whether the subsidiary had the power to obtain them. The case examines the boundaries of HMRC's information-gathering powers and the practical limits of corporate group relationships.

The UK's new International Controlled Transactions Schedule (ICTS) will fundamentally transform how HMRC assesses transfer pricing risks, shifting from documentation-focused reviews to data-driven analysis powered by AI and advanced analytics. With mandatory filing beginning January 1, 2027, multinational enterprises must prepare to provide detailed, standardized information about cross-border related party transactions, facing unprecedented scrutiny and visibility of their transfer pricing arrangements.

The OECD's side-by-side package introduces new safe harbors for multinational groups under Pillar Two's global minimum tax regime, responding to U.S. concerns about undertaxed profits rules and existing tax credits. These reforms create significant implications for M&A transactions, particularly affecting due diligence processes, target pricing certainty, and contractual protections for deals involving U.S. acquirers and joint venture structures with mixed investor bases.