Weekly tax brief | 16 March 2022

CGT revenues at risk without Spring Statement reforms
Chris Etherington
Fear and uncertainty over a potential capital gains tax rate increase is driving business owners to complete transactions before the Spring Statement announcements, ensuring a boost to the Treasury’s tax receipts. However, the tap could soon run dry and a decisive plan is needed in the Spring Statement to support entrepreneurial activity.

Will the Spring Statement uncover plans to help relieve the cost of living crisis?
Kate Aitchison
The impact of inflation is starting to bite, with the cost of food, petrol and heating going up. In addition, the Health and Social Care Levy is due to come into force from 6 April 2022 – placing the biggest squeeze on household incomes for many years. With the Spring Statement next week, what plans does the government have to help relieve the pressure?

North Sea windfall profits tax consistent with UK tax policy and favours renewables
George Bull
In a recent lecture, Chancellor of the Exchequer Rishi Sunak set out a framework for the UK’s tax strategy. A windfall profits tax on North Sea oil and gas producers is consistent with that strategy. We also explore how the Chancellor could use the Spring Statement to rapidly boost renewable energy generation while reducing the UK’s reliance on imported gas.

A slice of good news may create a repayment opportunity
Noel Mooney
A recent First-tier Tribunal decision found that legislation introduced in the Finance Act 2020, changing the rules governing the calculation of top-slicing relief (TSR), amounted to new legislation as opposed to clarifying existing legislation. This may create an opportunity to claim a refund for the 2017/18 tax year, but hurry as you only have until 5 April 2022.