Overview

This bill aims to restrict ownership of national media outlets in the UK to individuals and companies that are UK tax residents. It mandates that both parent companies and beneficial owners of these media outlets must be UK tax residents and pay taxes on their worldwide income to the UK government.

Description

The Media Owners (Residency Requirement) Bill seeks to amend the existing legal framework governing media ownership in the UK. Its key provisions are:

• Tax Residency Requirement: Parent companies and beneficial owners of national media outlets must be UK tax residents. This means they must meet the UK's criteria for tax residency.
• Worldwide Income Tax: These owners must pay tax on their worldwide income to Her Majesty's Revenue and Customs (HMRC), without utilizing certain tax avoidance strategies (as defined in section 809B(1)(c) of the Income Tax Act 2007).
• Definition of "Beneficial Owner": The bill defines "beneficial owner" as holding at least 10% ownership (compared to the 25% threshold in the Money Laundering Regulations 2007).
• Definition of "National Media Outlet": This is defined as a newspaper distributed across most of the UK, or a radio or television station broadcasting across most of the UK.
• Enforcement: The Secretary of State can apply to a court for an order if a parent company or beneficial owner is in breach of the law. If the court grants the order, the owner must divest themselves of the media outlet within two months.

Government Spending

The bill is unlikely to directly increase government spending. Any potential increase in tax revenue from new or increased tax liabilities from foreign owners would be offset by the enforcement costs incurred by the government.

Groups Affected

The bill primarily affects:

• Foreign Owners of UK National Media Outlets: Those who are not UK tax residents and currently own national media outlets would be required to either become UK tax residents, divest themselves of their ownership, or face legal action.
• HMRC: The bill increases HMRC's responsibility for enforcing the new residency requirements.
• UK National Media Outlets: These outlets may experience changes in ownership if current foreign owners do not comply with the new rules.

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