Latest: UK government under pressure for Plan B as new Delta strain spreads
A new variant of the Delta coronavirus strain thought to account for 6 per cent of all new UK cases is being closely monitored by scientists.
Sub-variant AY. 4.2 could be 10 to 15 per cent more infectious than the original Delta variant that was first spotted in India in December and has become the dominant Covid-19 strain.
Francois Balloux, director of the University College London Genetics Institute, published an analysis on Twitter suggesting that the data implied it was “intrinsically more transmissible”.
He said that research showed AY. 4.2 could be the most infectious variant of the virus to date. It is expected to be placed under investigation by the World Health Organisation.
An NHS document published on Tuesday revealed the sub-variant was one of four being monitored by scientists working for the UK Health Security Agency.
“A Delta sublineage newly designated as AY. 4.2 is noted to be expanding in England. It is now a signal in monitoring and assessment has commenced,” it said.
“New sublineages of Delta are regularly identified and designated. One recently designated sublineage, AY. 4.2, is not yet assigned by the Pangolin tool and therefore is not represented in Figure 10.
“This sublineage is currently increasing in frequency. It includes spike mutations A222V and Y145H. In the week beginning 27 September 2021 (the last week with complete sequencing data), this sublineage accounted for approximately 6 per cent of all sequences generated, on an increasing trajectory.”
Full WHO investigations could lead to it being assigned a Greek letter under its naming system, in the same way other variants of Covid-19 have been up to now.
More work was needed to fully understand its potential for disruption.
“It's good that we are aware. It's excellent that we have the facilities and infrastructure in place to see anything that might be a bit suspicious,” Mr Balloux said. “At this stage, I would say wait and see, don't panic. It might be slightly, subtly more transmissible but it is not something absolutely disastrous like we saw previously.”
Cases of Covid-19 in the UK are higher now that at the same time in 2020, when England still enforced local lockdowns.
On Tuesday, the UK Department of Health recorded 223 deaths, the highest level since March 9. However, infections had dropped to 43,738 after reaching almost 50,000 a day previously.
Recorded cases of new infections are outstripping some European countries and causing concern as winter approaches.
Experts said the UK’s steep rise in Covid infections could be a result of waning protection from vaccines.
The UK had one of the earliest and fastest immunisation campaigns, with protection of 90 per cent to 95 per cent from the AstraZeneca and Pfizer vaccines thought to last for about 20 weeks before antibodies begin to drop-off.
The number of people who have tested positive in the UK has steadily risen from a seven-day average of about 25,000 in early August to more than 40,000 cases a day in mid-October.
However, hospital admission rates remain considerably lower than a year ago.
Fewer than 1,000 daily cases end up in hospital now, compared to more than four times that figure 12 months ago, thanks mainly to a widespread vaccination programme through 67 per cent of the population is fully protected.
Profile of Bitex UAE
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Sector: Financial services
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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