Weekly tax brief |12 April 2022

In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments. Please feel free to share this update with any of your colleagues and invite them to sign up to our regular briefings here.

How the non-domiciled tax regime bolsters the UK economy
Gary Heynes
The non-domicile tax regime comes under regular scrutiny every few years, often being perceived as a tax avoidance mechanism the UK system could well do without. However, the truth is that it continues to provide significant benefits to the UK economy and without it we may all need to pay more tax to make up the shortfall.

Are HMRC’s plans to catch overseas criminals owning UK property driving away legitimate investment?
Michaela Norman
With the requirement to declare personal information if you are a beneficiary of UK property held through an offshore structure coming into place, HMRC hopes that it will be able to stop those with criminal links acquiring land and property in the UK. But are offshore property structures on the decline anyway, and will this further deter valuable foreign investment?

Never say never to a wealth tax
Chris Etherington
As a spotlight falls on fairness in the UK tax system, a new report from the Institute of Fiscal Studies makes the case for a wealth tax to be introduced on the very richest in society. The Chancellor has publicly denounced a wealth tax in the past but could recent events and Joe Biden’s efforts to introduce a minimum rate of tax on billionaires in the US sway his thinking?

Can the Chancellor’s Tax Plan reinvigorate investment in the UK?
Thomas Dews
To quote Mark Twain “there is no such thing as a new idea”. The Chancellor’s Tax Plan, released as part of the 2022 Spring Statement, certainly proves this is true when it comes to the Government’s ideas to boost business investment. But to save his political ambitions, Rishi Sunak needs something big and bold, and it could be argued the Tax Plan does not go far enough where business investment is concerned. 

Flapjacks highlight a sticky VAT situation on food
Sarah Halsted
A recent tribunal case on the VAT position of flapjacks has once again shone a light on the UK’s outdated and inflexible approach to taxing food products. When will the Government finally take action to bring the rules into the 21st century?

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