Weekly tax brief | 29 November 2022

Stealth tax raid by HMRC on taxpayer monies held to the tune of £391m
Noel Mooney
HMRC currently hold unallocated tax deposits totalling an astonishing £391m. In a recent announcement, it has reiterated that these deposits may be forfeited if they are not claimed by 23 November 2023.

Rewarding VAT win for employers offering voucher incentives
Philip Munn and Jared Evans
The European Court has confirmed that employers should not suffer a VAT cost when giving away vouchers to high-performing employees. As the case was referred from the UK tax tribunal before Brexit took effect, this decision will be binding in the UK and could overturn HMRC’s current VAT policy on employee rewards.

Private schools, VAT and tax – time for class?
Ian Brown
The chancellor confirmed in his Autumn Statement that he does not intend to impose VAT on private school fees but Labour’s policy is directly opposite. Where does that leave private schools with their VAT and tax planning?

House purchase help for elderly parents can cause a tax headache
Chris Etherington
It is quite common for parents to help their children acquire a new home but what are the tax implications if the tables are turned? With mortgage rates rising and the property market entering a slump, an increasing number of older parents may need support from their adult children to acquire a new home. Unfortunately, adverse tax implications can lay in wait for families that do not plan ahead.

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