British Foreign Minister David Lammy said 'this is not a blanket ban, this is not an arms embargo'. AFP
British Foreign Minister David Lammy said 'this is not a blanket ban, this is not an arms embargo'. AFP
British Foreign Minister David Lammy said 'this is not a blanket ban, this is not an arms embargo'. AFP
British Foreign Minister David Lammy said 'this is not a blanket ban, this is not an arms embargo'. AFP

UK announces partial ban on arms exports to Israel


Thomas Harding
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Britain has announced an arms embargo on 30 weapons export licences to Israel that UK authorities said might have been used to commit “serious violations” of international humanitarian law.

Foreign Secretary David Lammy told the House of Commons that the evidence meant Britain had no choice but to impose the ban.

Since Labour entered power in July there has been speculation that it might impose the ban. It came under pressure during the general election campaign over its support for Israel while civilians were being killed in large numbers in Gaza. The party also lost four seats to independent MPs who stood on a specific pro-Palestinian stance.

With Defence Secretary John Healey at his side, Mr Lammy said it was the government's “legal duty to review this export licence”.

While the government’s decision was not “a determination of guilt”, it had been forced into it after the vast scale of violence in Gaza, in which more than 40,700 Palestinians have been killed since October last year, health authorities in the enclave say.

“It is with regret that I inform the House today, the assessment I have received leaves me unable to conclude anything other than that for certain UK arms exports to Israel, there does exist a clear risk that they might be used to commit or facilitate a serious violations of international humanitarian law,” Mr Lammy said.

The government will publish in full precisely what has been banned, but they are 30 exports licences of 350 issued to UK defence companies under the arms control act.

An Israeli soldier launches a drone towards Gaza. Reuters
An Israeli soldier launches a drone towards Gaza. Reuters

It includes equipment that Britain assessed is being used in Gaza, “such as important components which go into military aircraft, including fighter aircraft, helicopters and drones”, and items that “facilitate ground targeting”.

Mr Lammy was keen to emphasise that it was not a full arms embargo that he said had been imposed by former Prime Minister Margaret Thatcher in 1982, following Israel’s invasion of Lebanon. He also raised other licence refusals imposed by Britain in 2009 and 2014.

“This is not a blanket ban, this is not an arms embargo,” he said, later adding that Israel had the right to defend itself against Hezbollah and Hamas, but it was “for items which were used in the current conflict in Gaza”.

He said exports of parts for the advanced F-35 fighters were not in the ban as that would undermine the global F-35 “flight supply chain that is vital to the security of the UK and our allies”.

“Let me leave this house in no doubt the UK continues to support Israel's right self-defence in accordance with international law,” he added.

Israeli Foreign Minister Israel Katz said on Monday that the decision was disappointing and that it "sends a very problematic message" to Hamas and its patrons in Iran.

Unlike the US, Britain's government does not give arms directly to Israel but rather issues licences for companies to sell weapons, with input from lawyers on whether they complied with international law.

Inside the Commons, there was largely broad support for the decision, with no condemnation from the Conservative Party and a few left-wing MPs such as Jeremy Corbyn, the former Labour leader, saying it did not go far enough.

Mike Martin, a former British army officer who served in Afghanistan and who is now a Liberal Democrats MP, welcomed the news that meant Britain had “doubts [over] Israel’s compliance to certain aspects of international law”.

Mr Lammy commissioned a thorough review into Israel’s compliance with that law on the day he entered office. He has also travelled twice to the country and the occupied West Bank to assess the situation first hand.

On Monday, he warned MPs that Israel's actions in Gaza “continue to lead to immense loss of civilian life, widespread destruction to civilian infrastructure”. But it was difficult to determine that precise cause of civilian deaths “because there is insufficient information, either from Israel or other reliable sources, to verify such claims”.

Mr Lammy also said Israel could do much more to ensure that food and medical supplies reached civilians in Gaza “in light of the appalling humanitarian situation”.

He decried the “credible claims of mistreatment of detainees” that the International Red Cross had been unable to investigate after being denied access detention facilities

Britain’s decision will also result in disagreement with Washington which has insisted that there is no basis in international humanitarian law to suspend arms exports.

Mr Lammy also announced new sanctions on four members of the Islamic Revolutionary Guards Corps from Iran who had been “supporting Iranian proxy actions in Iraq, Syria and Lebanon”.

F-35 programme

The ban represents about a tenth of arms exports from Britain to Israel which since 2008 has sold arms worth £576 million ($757.2 million) to the country.

The refusal to include the F-35 stealth fighters in the embargo, aircraft that are used extensively by Israel to bomb Gaza as well as Lebanon and Syria, was justified by Business Secretary Jonathan Reynolds.

He said the F-35 programme was “integral to international security” and that UK parts for the fighter “will be excluded from this decision, except where going directly to Israel”.

Any suspension of pooled parts for the aircraft was “not possible without having a significant effect on the global F35 fleet with serious implications for international peace and security”, Mr Reynolds said.

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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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Company: Rent Your Wardrobe 

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Updated: September 03, 2024, 6:49 AM