Weekly tax brief 31 May 2017

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

Don’t vilify companies claiming tax refunds

31 May 2017

One way or the other, the Court of Justice of the European Union has had a say in tax claims totalling £49bn which are now facing HMRC. Some people are critical of the companies which are legitimately claiming these amounts. But is that fair? And, after Brexit, will these claims be rejected?

Changes in inheritance tax laws encourage charitable giving

31 May 2017

Back in the March 2011 Budget, the Chancellor announced a cut in the rate of inheritance tax (IHT) for those leaving at least 10 per cent of their estate to a charity. Since then, statistics show there has been a sharp increase in the amount of charitable donations left in wills with an accompanying rise in the tax relief granted, suggesting that the policy is working as intended. Sadly though, there also seems to have been an increase in family members challenging wills where the family feel they have been disadvantaged as a result of the charitable bequests.

Do workers in the UK pay more or less tax than in other parts of the world?

31 May 2017

A simple question you might think, but, as at least one newspaper found this week, getting an answer is far from straightforward.

The insurance premium tax rise - who really pays?

31 May 2017

On 1 June, the standard rate of insurance premium tax (IPT) rises from 10 to 12 per cent, prompting howls of disapproval from the industry who are claiming that a typical household stands to pay an extra £50 a year. However, a common myth is that the IPT is always passed on to the insured. In fact, consumers may not be as badly hit as some are predicting – at least for now.

Will the Taylor review be an opportunity missed?

31 May 2017

With the publication of the review into employment practices in the modern economy by Matthew Taylor expected in a matter of weeks, there has been significant comment that the issue of taxation and National Insurance must also be considered.