In May 2011, HM Revenue & Customs (HMRC) issued a discussion document on the tax treatment of regulatory capital instruments (see below). HMRC also announced a series of meetings to discuss aspects of the Basel III proposals and forthcoming European Union Capital Requirements Directive (CRD 4).
In advance of recent working group meetings on 28 July 2011 and 1 August 2011, HMRC produced two papers to facilitate discussion which set out their initial views on identified tax issues arising in regard to ‘going concern’ and ‘gone concern’ capital. The views expressed by HMRC in these papers are initial views based on their understanding of the draft CRD 4 proposals and at this stage should be read only as an initial analysis of the basic criteria for these instruments.
HMRC is aware that in some of these areas there will be different views to the analysis set out in the papers. In particular the working group identified a number of issues arising from the analysis on distributions. HMRC notes this and will continue to develop its analysis in this and other areas, to gain a better understanding of the issues arising.
HMRC welcomes constructive dialogue from working group participants and will continue to meet bi-laterally with interested parties before summarising their findings at the 22 September 2011 meeting.
On this page you will find the dates of group meetings, the latest versions of the relevant discussion documents and subsequent meeting minutes.
| Meeting date | Discussion topic(s) | Supporting documentation |
|---|---|---|
| 18 May 2011 | Introduction to the consultation process | Discussion document on the tax treatment of regulatory capital instruments (PDF 45K) Minutes of working group meeting held on 18 May 2011 (PDF 37K) |
| 23 June 2011 | 'Going concern' Group | |
| 6 July 2011 | 'Gone concern' Group | |
| 14 July 2011 | Mutuals Group | |
| 28 July 2011 | 'Going concern' Group | Discussion document on the tax treatment of going concern capital (PDF 98K) Minutes of working group meeting held on 28 July 2011 (PDF 34K) |
| 1 August 2011 | 'Gone concern' Group | Discussion document on the tax treatment of gone concern capital (PDF 82K) Minutes of working group meeting held on 1 August 2011 (PDF 28K) |
| 9 August 2011 | Mutuals Group | |
| 22 September 2011 | Summary of findings to date |
Terms of Reference for the Basel III Working Group (PDF 20K)
