Overview

This bill aims to restrict ownership of national media outlets in the UK to individuals and companies that are UK tax residents, requiring them to pay taxes on their worldwide income. The goal is to ensure greater accountability and transparency in media ownership.

Description

The Media Owners (Residency Requirement) Bill mandates that all parent companies and beneficial owners of national media outlets must:

• Be resident in the UK for tax purposes.
• Pay taxes on their global income to Her Majesty's Revenue and Customs (HMRC), without utilizing section 809B(1)(c) of the Income Tax Act 2007.

Key definitions within the bill include:

• Beneficial owner: Defined as per the Money Laundering Regulations 2007, but with a 10% ownership threshold (instead of 25%).
• National media outlet: A newspaper distributed nationally or a radio/television station broadcasting across most of the UK.
• Parent company: Defined according to the Companies Act 2006.

Enforcement involves the Secretary of State applying to a court if a breach of these rules is suspected. The court can order the divestment of ownership within two months.

Government Spending

The bill's direct impact on government spending is not explicitly stated within the provided text. However, increased tax revenue from complying media owners is a potential positive effect on government finances.

Groups Affected

• Current media owners: Non-UK tax resident owners of national media outlets will be directly impacted, potentially requiring them to sell their holdings if they do not meet the residency and tax requirements.
• Potential media buyers: The bill will restrict the pool of potential buyers of national media outlets to those meeting the specified criteria.
• HMRC: Increased workload associated with verifying the tax status of media owners.
• The Courts: Increased potential for legal cases resulting from enforcement actions.

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