Weekly tax brief - 19 April 2017

In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments.

Jam or toast? Tax will be one of the major battlegrounds in the run-up to the election

19 April 2017

Tax will be one of the major battlegrounds in the run-up to the 8 June general election. The Conservatives recognise that families with incomes of up to £50,000 may only just be managing, while Labour regards those with earnings of £70,000 as rich people to be targeted for higher taxes. We explore the issues.

Which parts of the Finance Bill will survive the pre-election ‘wash-up’?

19 April 2017

Parliament will be dissolved on 2 May meaning there will not be enough time for the remaining stages of the 762-page Finance Bill to be completed. What is almost certain is that we will go into the ‘wash up’ process, where government and opposition agree which parts of the bill can be rushed through in the remaining days of this Parliament. So which bits will survive and which will be ditched?

Buy-to-let landlords: think twice before rushing to use a company

19 April 2017

Tax changes introduced on 6 April 2017 have led some landlords to consider whether property should be held in a company rather than personally. Full interest relief should be available to most buy-to-let properties held in a company, so on the face of it, it seems a better tax position – but is it?

European Court of Justice VAT decisions to impact UK after Brexit

19 April 2017

It is entirely plausible that the Court of Justice of the European Union (CJEU) will still be making decisions on the UK’s tax system in 2023. Where there is insufficient CJEU precedent on interpretation of EU VAT law, a referral may still be required from UK VAT courts to be heard by the CJEU, and a binding decision issued by the CJEU, even if the UK has already left the EU by the time the decision is handed down.