Author: Europe News Desk

On January 1, 2025, France’s Ministry of Economy and Finance implemented major reforms to the tax payment suspension mechanism under the Initial Finance Law (LFI) 2025. These changes aimed to reduce financial strain on businesses and streamline dispute resolution. Key Reforms: 🔹 Lower Guarantee Requirement – Reduced from 50% to 25% of the disputed tax amount.🔹 Direct Payments to Treasury – Payments were made to the Deposit and Consignation Fund for security and transparency.🔹 Full Reimbursement – If a taxpayer won the dispute, the entire 25% guarantee was refunded. Additional Improvements: Faster Resolution – A simplified process with single direct…

Before claiming Research and Development (R&D) tax relief or expenditure credit, UK companies must submit an additional information form to HMRC for each accounting period. If an accounting period exceeds 12 months, businesses must submit: For example, a 16-month period requires two tax returns: one for the first 12 months and another for the final 4 months. Each form should only include relevant information for that specific period. Key Reporting Requirements Both R&D tax relief and expenditure credit claims must be reported separately and must include: Submission Timing The additional information form must be submitted before or on the due…

Keir Starmer’s government is facing strong criticism over potential reductions to the UK’s £1bn-a-year digital services tax, which affects major US tech firms like Meta and Amazon. The proposed changes come amid controversial welfare cuts and public sector job losses, prompting accusations of “appeasing” Donald Trump. Chancellor Rachel Reeves confirmed discussions about the tax are ongoing but emphasized the need for balance. The move is reportedly part of negotiations to remove Trump’s 25% tariffs on British steel. Critics, including Labour MPs and Liberal Democrat leader Ed Davey, argue that slashing taxes for US tech giants while reducing disability benefits and…

Effective January 1, 2025, businesses in the European Union, including Hungary, can apply for a small business VAT exemption outside their member state of establishment, provided they meet the conditions under the Special Scheme for Small Enterprises (SME scheme). This initiative simplifies cross-border tax compliance for eligible small businesses. Hungarian businesses can register for the SME scheme via the SME section of their Customer Portal using their taxpayer identification number. However, private individuals logging in with taxpayer identification signs will not have access to SME functionalities. To benefit from the cross-border VAT exemption, businesses must submit a prior declaration through…

Greece has introduced €140 million in funding to accelerate renewable energy projects, including hydrogen production and high-efficiency co-generation, in the Just Transition regions of Western Macedonia and Megalopolis. The grants, unveiled by Deputy Minister of National Economy and Finance Nikos Papathanasis, are designed to support and large enterprises in their shift to clean energy. The breakdown of the grants is as follows: These initiatives will be evaluated based on comparative assessments that prioritize eligible energy production expenses. The funding aims to address the socio-economic challenges related to lignite phase-out, supporting Greece’s transition to a climate-neutral economy. Papathanasis noted that the…

Rachel Reeves’ controversial inheritance tax changes could lead to the loss of over 200,000 jobs and cost the UK economy £14.9 billion, according to new research by independent consultancy CBI-Economics. The study, commissioned by Family Business UK, surveyed over 4,000 businesses and farms, revealing the widespread impact of the so-called “tractor tax.” The policy imposes a 20% inheritance tax on farms valued at £1 million or more, with ministers defending it as a necessary measure to address the UK’s financial shortfall. However, the research found that nearly a quarter of family businesses and 17% of farms have already cut jobs…

Holiday let owners attempting to secure inheritance tax (IHT) relief are increasingly being rejected by HMRCas the tax authority takes a stricter stance on claims that rental properties qualify for business property relief (BPR). A recent ruling against the £1.1 million estate of Gertrud Tanner, which included five managed holiday homes in North Yorkshire, underscores HMRC’s hardline approach. Despite offering cleaning services, gardening, welcome baskets, and guest assistance, the estate was deemed an investment property rather than a business, making it ineligible for the valuable IHT exemption. The Battle Over Business Status Under UK tax law, businesses can qualify for…

From April 1, second homeowners across England will face a 100% premium on council tax, effectively doubling their bills as local councils implement sweeping tax changes to discourage second home ownership. The move, approved under the Leveling Up and Regeneration Act 2023 to prevent, is expected to impact around 130,000 properties, with some homeowners seeing annual tax bills skyrocket past £10,000. For Mag Humphreys, 71, the changes will mean a £6,000 annual tax bill on a family bungalow in Rock, Cornwall, that she inherited along with her siblings. “If you’ve got a house in Rock, they assume you’re a millionaire,”…

Chancellor Rachel Reeves has definitively ruled out “tax and spend” policies in her upcoming Spring Statement, signaling her intention to avoid increasing taxes or government spending. This move comes when the UK faces significant fiscal challenges, including higher-than-expected government borrowing and a slowing economy. Reeves, speaking in an interview for the BBC documentary The Making of a Chancellor, emphasized that the current economic environment does not support the expansive spending seen under the previous Labour government. “We can’t tax and spend our way to higher living standards and better public services,” she stated, reinforcing her belief that the government must…

To strengthen Europe’s defense capabilities, the European Commission has introduced a new €150 billion defense fund, known as the Security Action for Europe (SAFE) bill. One of the key features of the proposal is a temporary VAT exemption on defense products, including imports and intra-Union transactions, aimed at incentivizing production and procurement of military goods. The SAFE bill will provide a €150 billion loan to enhance Europe’s military readiness amid ongoing geopolitical tensions, including the war in Ukraine and concerns about the United States’ ongoing commitment to European defense. The proposal, released this Wednesday, must go through the legislative process…