Weekly tax brief | 26 July 2022

IHT revenues set to skyrocket further
Chris Etherington
Inheritance tax (IHT) statistics to be published this week will show that IHT revenues increased to record levels in the year to 31 March 2022, to around £6.1 billion, a new record for IHT revenues generated by the Treasury. However, it’s a record that looks set to be broken in the coming year.

What tax cuts mean for business owners
 Adela Cebotari
With various pledges being made on tax cuts in the Conservative leadership contest, we look at the potential impact for new entrepreneurs and how they should structure their businesses.

Record tax receipts for the Treasury but tax yield from HMRC compliance activities remains static
 Matt Taylor
HMRC’s latest annual report shows it collected record tax revenues of £731bn in the year to 31 March 2022, yet tax yield from compliance activity remained flat. With HMRC under pressure to tackle non-compliance of Covid support measures, will we see future tax yield increase to pre-pandemic levels?

A room with a view of IHT liabilities
Eugenia Campbell
 In the first case of its kind, the availability of business property relief (BPR) for serviced apartments has been tested at the First-tier Tribunal. Despite a passionate argument of luxury, hotel-type services being provided, the taxpayer’s evidence did not stack up and BPR was denied.

Tribunal approves the collection of company debt from company director
Sian Marsden
Trading through a company typically means the company is responsible for any debts that arise, as opposed to the individuals connected to the company. However, as shown in a recent case, HMRC has the power to bypass this and personally pursue individuals for liabilities relating to national insurance contributions.

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