On 31 December 2020, HM Revenue and Customs (HMRC) announced that the UK has decided to repeal DAC 6 and implement its own mandatory disclosure rules (MDR) regime.

As provided for in the trade agreement between the UK and the EU, it has been agreed that the UK will now apply the OECD rules instead.

The key changes in effect from 31 December 2020 are:

  •  reporting cross-border tax arrangements to HMRC is still required, but only for arrangements which meet hallmark D
  •  hallmarks A,B,C and E have been repealed.

The deadline for reporting hallmark D arrangements has not changed. These will need to be reported to HMRC within the existing timeline

In 2021, the UK will consult on and implement a new version of the MDR to replace DAC 6. Until then, the UK regulations are being amended.