The Home Office in London. EPA
The Home Office in London. EPA
The Home Office in London. EPA
The Home Office in London. EPA

UK housing shortage puts Afghan asylum seekers at risk of homelessness, LGA warns


Soraya Ebrahimi
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UK housing shortages and long waiting lists could put 8,000 Afghans at risk of becoming homeless, the Local Government Association has warned.

The Home Office served notice to Afghan asylum seekers to leave their temporary bridging hotels by the end of August, the LGA said in a statement.

They have been provided with information about available support to help them find their own housing.

However, the LGA warned that the short time frame combined with nationwide housing shortages are making it difficult for local councils to secure accommodation in time.

The announcenemy comes as the LGA hosts its annual conference in Bournemouth on Tuesday.

Ahead of the conference, the organisation has called on the government to improve its engagement with councils and to recognise the complexities they face.

Afghan migrant documents dangerous journey across Channel – video

Among the issues raised include the funding of councils for their support of Ukrainian households, the change to the roles and responsibilities for councils proposed in the Illegal Migration Bill, and the impact on local services of the rapid rise in numbers of new arrivals.

New LGA chairman Shaun Davies will say in his first speech at the annual conference on Tuesday that councils are at a “crisis point”.

“Councils have a proud history of stepping up and supporting asylum seekers and refugees to settle in the UK and rebuild their lives,” he is expected to say.

“But combined pressures from government asylum and resettlement schemes are growing on councils.

“We are at crisis point.

“We want to work with the government to get this right. Not just in a way that best supports the people arriving in the UK but also tackles the unsustainable pressures on our local services and on our communities.”

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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

Updated: July 03, 2023, 11:01 PM