Consultations issued on "Tax Day" by The Treasury
The Treasury normally issue a bundle of tax consultation documents on Budget Day. This year however they chose to delay the publication until 3 weeks after the Budget. We were expecting the consultation documents to include major changes to CGT and IHT, but it would appear that these have yet again been delayed. The Treasury have accepted a number of recommendations by the Office of Tax Simplification (OTS) on simplifying IHT reporting. From 1 January 2022 over 90 per cent of non-taxpaying estates each year will no longer have to complete IHT forms for deaths when probate is required. The government will also consider introducing a new digital system for IHT and probate reporting.
Another consultation is seeking views on modernising the tax administration system including changes to the payment dates for those outside PAYE. It would appear that HMRC are reconsidering a possible Pay as You Go system for the self-employed that was originally consulted on in 2016.
Review of Business Rates
Among the documents published was an interim report on the government’s Fundamental Review of Business Rates, which sets out a summary of responses to
last year’s call for evidence. The final report will be published in the Autumn. The government will also legislate to tighten tax rules for second
homeowners meaning they can only register for business rates (and business rates relief) if their properties are genuine holiday lets. This will close
a loophole that allowed some second homeowners to avoid paying council tax on that property, and some were even claiming coronavirus support grants
for their “business”.
If you would like more information or would like to discuss your tax affairs in more detail please don't hesitate to contact our Tax Partners, Steve Crompton
or Lucy Williams on the details below: