The UK has published the final version of the updated regulations for UK Mandatory Disclosure Rules (MDR). These regulations will come into force on 28 March 2023, and any arrangements entered into on or after this date will need to be reported to HMRC under these rules. The new MDR rules will replace the existing DAC6 regulations, though HMRC have confirmed that the DAC6 reporting portal will remain open for another month to allow arrangements entered before 28 March to be reported under DAC6.

Background to UK MDR

In 2018, the OECD developed a set of rules requiring taxpayers and their advisers to report information to tax authorities on certain types of arrangements and structures that might facilitate tax evasion. The goals of these rules are to:

  • Tackle tax avoidance and tax evasion
  • Strengthen tax transparency
  • Improve information sharing between countries

For these purposes, the OECD created the Model Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structures (The OECD Model Rules).

The scope of UK MDR is limited to those arrangements that are reportable under the OECD’s Mandatory Disclosure Rules.

VinciWorks’ new MDR course

VinciWorks has created a new micro-course that offers a high-level overview of everything you need to know about the UK Mandatory Disclosure Rules.

Learning outcomes:

  • Know the requirements of UK MDR
  • Understand the differences between DAC6 and UK MDR
  • Know what tax arrangements are reportable for UK entities

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