Weekly tax brief | 21 July 2020

Entrepreneurs Relief: version 2.0
Helen Relf & Chris Etherington
Given the Chancellor’s short but dramatic track record on capital gains tax reforms to date, there is an understandable wariness that his request to the Office of Tax Simplification to review the capital gains tax regime is a precursor to tax rises. It needn’t just be about that; it also presents the opportunity to clear the decks and introduce a new set of rules to incentivise the next generation of entrepreneurs and get the economy going again. 

Tribunal supports reduced rate of VAT for the hire of child car seats
Sarah Halsted & Phil Munn
A tribunal has ruled that car hire customers are entitled to a reduced VAT rate of five per cent on hire fees for child car seats. As child seats are essential, enabling customers to stay within the law, should the dispute have come this far?

How many consultations does it take to reform the UK tax system?
George Bull
Observers of the UK tax scene will know how easy it is to get to the wrong place for all the right reasons. The last week has seen the launch of five separate government- or Parliament-initiated tax reform projects. There is a real risk of muddle, confusion and competing priorities. Clear vision, tough negotiating skills and strong leadership will be required if the UK is to have a post-coronavirus tax system fit for purpose in the 21st century.

The rural community must speak up
Sharon Omer-Kaye and Jack Deal
With a growing sense that capital taxes are set for reform, this presents grave concerns for the rural sector which relies on many capital tax reliefs for inter-generational planning. It also comes off the back of changes to subsidy support, trade tariffs and labour restrictions which already pose their own challenges. It is crucial therefore that the Office of Tax Simplification consults with the rural community and that the rural community voices its concerns.