Application of Expert Group opinion postponed: allocation of Box 3 assets between a taxpayer with a partial foreign tax liability and partner remains possible

In our previous newsletter we reported a new opinion issued by the Expert Group on the allocation of Box 3 assets between partners where one of them qualifies as a taxpayer with a partial foreign tax liability. Briefly, the opinion was that allocation between these partners is possible, but that this does not lead to a lower taxable income than if both partners are domestic taxpayers. We indicated in our newsletter at the time that we see this differently. 

The tax authorities have since published a statement on this Expert Group opinion indicating that the position in question deviates from previous policy that has been widely applied in practice. In view of this, the opinion will not be applied by the Tax and Customs Administration until the end of the 2026 tax year. This means that the opinion will not affect the allocation of joint income elements to the taxpayer with a partial foreign tax liability, given that the transition arrangements applicable to a partial foreign tax liability will lapse from 1 January 2027. 

The tax authorities further state that the opinion will apply to other taxpayers affected by this issue from 1 January 2027, such as privileged persons, qualifying foreign taxpayers and persons covered by non-discriminatory provisions. The opinion will be amended for this group of taxpayers.