Weekly tax brief | 8 February 2023

Large increase in SDLT relief claimed by landlords
Chris Etherington
Landlords are amongst those feeling the cost of rising interest rates and the fact they may not receive full tax relief for their mortgage and other finance costs could encourage more to exit the market. One potential route to address this is to incorporate their portfolio and recent statistics from HMRC suggest many are already doing so.

HMRC’s £5K fine on trusts
Sian Marsden and Emma Newsome
Legislation introduced to require trusts to register details with HMRC includes the potential for trustees to be fined £5,000 for failure to keep the trust register up to date. New guidance released may suggest HMRC is looking to begin levying these penalties. However, do these penalties have the desired effect of increasing compliance, and what are the chances of them really being levied?

How can we make non-dom rules fit for purpose?
Rachel de Souza
Scrapping the preferential tax rules for those with non-UK domicile (‘non-dom’) status continues to be the flagship tax policy for the Labour party. It remains unclear what the chancellor’s thoughts are on the rules, having asked the Treasury to undertake an analysis of this, but there are options to reform and improve the non-dom regime rather than abolish it altogether.

Is the UK wrong to implement a global minimum tax early?
Thomas Dews
In 2021, the Organisation for Economic Co-operation and Development (OECD) reached an agreement to introduce a global minimum corporation tax rate of 15%. The UK government appears eager to accelerate the implementation of this, but a recent report by the Adam Smith Institute raises questions over whether this could lead to ‘first-mover disadvantages’ for the UK.

Over a million of our homes have been sold which has given the government £10bn of tax
Michaela Norman
A new set of statistics has been released in respect of the Stamp Duty Land Tax (SDLT) receipts looking back over the 2021/22 financial year, and the UK government has benefited from over £10 billion in SDLT from residential transactions as over 1.2 million homes have been sold.

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