HMRC has published its summary of responses to the consultation process with respect to the UK mandatory disclosure rules (UK MDR). The consultation period ran from November 2021 to February 2022 and the process sought views on the design of draft disclosure regulations which, when introduced, would implement the OECD’s model MDR in the UK, thereby replacing DAC6. The regime was to cover CRS avoidance arrangements and the use of opaque offshore structures (effectively, the DAC6 hallmarks D1 and D2), but would operate at a global level, without the express requirement for a cross-border component and, in the case of CRS avoidance, with a look-back to October 2014 (the date of publication of the CRS). Unsurprisingly, the consultation responses focused particularly on the challenges involved in an eight year look-back and happily HMRC has now dropped this proposal. However, there will still be a look-back to June 2018, and this could be relevant to promoters of CRS arrangements falling outside the territorial scope of DAC6. The new rules will take effect in the first half of 2023, whereupon the DAC6 rules will be repealed. In the meantime, HRMC will provide further clarification and revised DAC6 guidance to address the specifics of UK MDR.

The regulations implementing MDR will come into force in the first half of 2023.

 www.gov.uk/...