Newsletters

21.05.2019

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Non-UK Public Service Pension Scheme Entitled to UK Tax Exemption on Rental Income
The UK First-Tier Tribunal Tax Chamber found that a German pension scheme was eligible for an income tax exemption in the UK even though it could not register as a public service pension scheme in the UK, because it had not been established by a UK legislative body. The law was held to be in breach of the EU principle of the freedom of movement of capital and is thus unlawful. The German pension scheme is therefore entitled to tax exemption without registration in the UK.
Note: This newsletter is also available in German language:
Partial write-downs to secondary market value for shares of permanently closed open-ended real estate funds

Open-ended real estate funds, which experienced liquidity difficulties in the wake of the financial market crisis and ultimately had to be wound up as a result, have permanently stopped issuing and redeeming their shares. They are therefore referred to as closed open-ended real estate funds. The German Federal Fiscal Court has now decided that the partial value of shares in such closed open-ended real estate funds corresponds to the exchange price at which they are traded (BFH 13th February 2019, XI R 41/17). The value of such shares is expected to be permanently impaired if the exchange price (secondary market value) fell below the book values on the balance sheet date and the price loss exceeds the de minimis limit of 5%.

In our opinion, in the case of partial write-downs for these shares to the secondary market value, the investor's real estate gain must also be adjusted accordingly. However, due to the lack of ripeness for adjudication, the German Federal Fiscal Court did not decide this question and has instead referred it back to the lower courts.

Note: This newsletter is only available in German language.
11.04.2019

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Pre-marketing will be approved in the EU – but will be more difficult for Germany than is currently the case

The European Commission’s aim: To facilitate the cross-border distribution of investment funds. The result: Pre-marketing will be allowed in all member states, but the consequences are severe. Pre-marketing is to be regulated uniformly throughout the EU by a directive and a regulation. In the future, subscriptions will be possible only after the marketing notification procedure has been completed.

Note: This newsletter is also available in German language:
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