Weekly Tax Brief - 23 September 2015

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

Does the UK tax system make income inequality worse?

23 September 2015

The Institute for Fiscal Studies (IFS) has published an informative report looking at the way the UK tax and benefits system distributes income across individuals’ lifetimes. While 36 per cent of people receive more in benefits than they pay in taxes on a single year basis, over a lifetime this figure falls to 7 per cent. So what does this all mean for the design of our tax system?

Will HMRC rejoice if cash is abolished?

23 September 2015

A recent report by the Bank of England shows that bank notes worth £63bn were in circulation at the end of July 2015, with suggestions that individuals are holding or hoarding anywhere between £3bn and £5bn worth of cash. The Bank of England recognises that disproportionately large amounts of cash are circulating in the 'informal economy'.

Downsizing tax legislation would be good!

23 September 2015

One example is the positive tax announcement in the Summer Budget of the introduction of a further Inheritance Tax nil rate band for main residences (RNRB).

And the winner of the 2015 Rugby World Cup is ... HMRC

23 September 2015

The record-breaking attendances at the 2015 Rugby World Cup coupled with some truly gripping games means this flagship event will be an undoubted success and a marvellous advertisement for the UK.

HMRC surveys effectiveness of its ... surveys

23 September 2015

Tax policy must be developed on the back of quality data and analysis. The same goes for ongoing evaluation of the effectiveness of those policies once they are enacted. So what do the latest surveys from HMRC tell us about the effectiveness of its own surveys?

Will the LibDems' new VAT policy further the cause of the tourism lobby?

23 September 2015

The Liberal Democrats this week voted in favour of reducing VAT on tourist accommodation and attractions in stark contrast to the position taken by the Conservative/LibDem coalition government. The motion in favour of a reduction from 20 per cent to 5 per cent argued that similar initiatives in other EU countries had increased jobs and stimulated economic activity. So if the case is so compelling, why hasn’t the UK followed suit?