Weekly tax brief - 4 May 2016

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

Do tax subsidies for housing really skew the investment landscape?

04 May 2016

A recent report from the National Institute of Economic and Social Research argues that tax subsidies for housing are causing households to concentrate on buying property at the expense of other, more economically productive, forms of long-term saving. It’s an interesting, albeit flawed, line of argument, but isn’t there one very important factor missing from their reasoning?

Bank of mum and dad - a road paved with good intentions

04 May 2016

As has been well reported, the Centre for Economics and Business Research suggests that the 'bank of mum and dad' will account for around £5bn of lending to children buying property, making them a top ten lender.

HMRC VAT policy catches up with Town and Country Planning Orders

04 May 2016

HMRC has finally clarified its policy concerning the VAT zero-rated sale of non-residential buildings that have been converted into dwellings. Good news for builders and a victory for common sense, but could this lead to resolution of other contentious VAT issues in the construction industry? We live in hope…

Can Scotland expect higher commercial property taxes post-election?

04 May 2016

The latest figures from Revenue Scotland on the land and buildings transactions tax show that non-residential transactions raised over £68m more than anticipated last year. Despite this windfall, could further tax rises be on the way for commercial property after the election?