The UK might limit DAC6 disclosures after Brexit. While the UK will generally stick to EU regulations, DAC6 is considered too broad to be effective and should be changed in the long term. Due to the large number of expected DAC6 disclosures, costs related to reporting, data management, automation, administration, processing and identification for the intermediaries is expected to increase. Tax professionals are worried that HRMC will not have the technology and expertise to sort through intermediary filings under DAC6. DAC6 might also be considered overkill, as the UK already has the disclosure of tax avoidance schemes (DOTAS) regime.
Effective date: January 2021