CGT statistics show it's time for a tax cut
The latest statistics show that the Treasury has benefitted from bumper capital gains tax (CGT) receipts in the year to 5 April 2020, with a record number of people claiming Entrepreneurs’ Relief at a time when there was widespread speculation it would be abolished. The Chancellor has now used fear to drive up tax receipts for the last two years. As we emerge from the pandemic, now is the time to provide certainty and encourage a new generation of entrepreneurs by introducing a new CGT relief.
M&A boom leads to VAT risk
HMRC continues to challenge taxpayers who reclaim VAT costs related to M&A activity. Autumn is traditionally a busy time for M&A transactions so, as we approach this period of increased activity, VAT costs should not be ignored.
Tax reform for partners and the self-employed: cash flow problems and more red tape?
In the cause of simplification HMRC proposes changes to the tax rules for the self-employed, partners in partnerships and members of limited liability partnerships. With a pandemic to pay for, the prospect of a tax windfall without increasing tax rates is very attractive to the Treasury. We are concerned that these changes will mean a heavy additional administrative burden for many businesses, along with faster tax payments.
Changes in HMRC’s interpretation of certain tax rules sprung on non-doms go unannounced
The UK tax treatment of non-domiciled individuals (non-doms) has changed frequently over the years, with uncertainty at times over how the rules actually apply. It now seems that even HMRC is unsure how to apply some of these rules.
Making tax better
The Chartered Institute of Taxation (CIOT) sent the Scottish Parliament its suggestions of how to make tax better. The UK Parliament should take note, as our tax legislation is out of control.