HMRC have updated their DAC6 guidance following the unexpected announcement on 31 December 2020 that in light of Brexit, DAC6 would be changed in the UK to be more aligned with the OECD’s model Mandatory Disclosure Rules. The changes were implemented through Statutory Instrument 2020/1649.

Definition of “cross-border” and “states”

The updated guidance stipulates that references in the Directive to a ‘member state’ are to be read as if they were references to a ‘state’, where ‘state’ is defined as being the UK or an EU member state. 

Therefore, for the purposes of the UK regulations, an arrangement will be cross-border if it concerns:

  1. The UK and an EU member state
  2. The UK and a non-EU member state
  3. Two or more EU member states
  4. An EU member state and a third country.

The overseas territories and dependencies of the UK and EU member states are considered to be separate jurisdictions and arrangements involving those jurisdictions should be analysed accordingly for reporting purposes.


The guidance stipulates that hallmark categories A, B, C and E are no longer relevant for the purposes of UK reporting. This applies to all arrangements caught by the regulations regardless of when they were entered into, or when they were made available for implementation or ready for implementation.

Main Benefit Test

The guidance also explains that the concept of tax advantage is no longer relevant in applying the main benefit test. This is due to the fact that the main benefit test does not apply to hallmarks under category D.

VinciWorks’ DAC6 Solution has been updated to support UK DAC6 reporting and offers a global reporting solution for international firms for MDR regulations in many other jurisdictions too.Get in touch with us to see how Omnitrack can help ensure you are completing your reporting requirements.