The United Kingdom in Relation to EU Disclosure Provisions

The United Kingdom is taking advantage of its decision to break from the European Union and has made it clear that it will cancel its participation in almost all of the European Unions’ Council Directive (EU) 2018/822 (DAC6) in relation to disclosure of cross border taxation schemes.

Whilst the two powers do have a free trade agreement in place this does not mean that the UK has to abide by any directives other than those standards committed to.

Rather than committing to the DAC6 as it had previously agreed to do the UK will now only go as far as to follow the Common Reporting Standard that currently only covers Category D tax planning.

It is believed that this decision will simplify and reduce uncertainty and work load for a number of UK advisers as the DAC6 is generally considered as poorly targeted and in many cases and unnecessary duplication.