For the benefit of key stakeholders, HMRC kindly has shared an informal brief summary of the substantive points raised in consultation and their response to those points:
Emphasise key points more clearly and provide more guidance around the key principles of 'place of residence' and examples of how they work in practice. A new section has been added to the technical guidance more clearly setting out illustrating those key principles.
Begin guidance with case law to better illustrate the basis from which principles for SRIT tests and in particular 'place of residence' are drawn – guidance amended to reflect
Emphasise/make clearer that an individual cannot be a Scottish taxpayer unless he/she is UK tax resident (but articulate interaction with SRT 'split year' treatment in the year that an individual becomes or ceases to be UK resident – guidance amended to reflect Provide greater clarity regarding the difference in operation of tests for 'day counting' and 'close connection' where an individual has had more than one residence or main residence in the course of the year (i.e. the former considers days spent in Scotland against aggregate days spent elsewhere in the UK, the latter considers days in Scotland against days spent in each other constituent part of the UK on an individual basis) – guidance amended to reflect. List of factors illustrative of a “main place of residence” should be enhanced with the inclusion of factors indicative of the location of an individual’s social and/or private life/activities - guidance amended to reflect.
Confirmation that 'place of residence' does not signify residence for other tax areas e.g. CG PPR – guidance amended to reflect.
Greater clarity of meaning of 'Part of the UK' - guidance amended to reflect.
Clarification of whether flexibility exists for exceptional circumstances around place of residence (e.g. looking after sick parents, move out while storm damage on your house is repaired) - guidance amended to reflect. Rank/weight factors illustrative of “main place of residence” – the factors relevant and illustrative of main place of residence will vary from individual to individual with factors decisive in some scenarios irrelevant in others. The test is therefore of a qualitative rather than a quantitative nature and not capable of weighting/ranking. Amend the guidance to reflect changes made to the definition of a Scottish taxpayer (esp. Scottish Parliamentarian) made by The Wales Act 2014 (s.11) – these changes do not have effect until the Welsh rate of Income Tax commences.
Trade Union Bill exemption call for Scotland 2 November 2015
An official request has been made for Scotland to be excluded from the entire Trade Union Bill
Cabinet Secretary for Fair Work Skills & Training, Roseanna Cunningham has made the request in a letter to the UK Minister for Skills, Nick Boles.
In her letter Ms Cunningham said that she believes the Trade Union Bill proposals have the potential to undermine the effective engagement of trade unions across Scottish workplaces and in particular across the Scottish public sector. She said that all the measures within the Bill in combination will affect employees’ right to strike, change the relationship between unions and organisations negatively, and lead to greater confusion amongst employees. The letter states that this directly impacts across Scottish business and especially the devolved public services in Scotland and is therefore not a constructive platform upon which the Scottish government can pursue their ambitions for Scottish workers. The letter goes on to say that there are significant concerns that the Bill as currently drafted leaves far too much scope for abuse in the future and that the detail of much of the Bill is to be set out in regulations, and there would be no formal opportunity for the Scottish government to influence such regulations. The letter concludes with a request that Scotland be excluded from the entire Bill and that an alternative extent clause be introduced as one of the UK government’s amendments to the Bill. The Scottish government believes this is the only way in which they will be able to maintain the integrity of their more progressive approach of
CIPP Policy News Journal
25/04/2016, Page 409 of 453
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