These documents and consultations would normally be published along with the Budget, but were held back and published under the Tax Policies and Consultations Update (Spring 2021), allowing more time for scrutiny by stakeholders.
Included in the release was:
A call for evidence with the Tax Administration Framework, creating a trusted, modern tax administration system that is simpler and easy to use.
A consultation on the potential changes to Air Passenger Duty by cutting tax on domestic flights which includes consultation on carbon reduction.
An interim report regarding the Government's fundamental review of Business Rates with the final report being published later in the year.
The Government has also announced a tightening up of tax rules for second property owners. This means they can only register for the business rates scheme if their property is a genuine holiday let.
In England, the situation is that many holiday lets pay Business Rates rather than Council Tax if an owner declares they will be letting out their property in the next year. However, many owners attempt to save money by declaring a property as a let, but making no effort to let it out.
There is also an announcement about a cut in Inheritance Tax red tape for over 200,000 estates each year, with over 90% of non-taxpaying estates not having to complete Inheritance Tax forms from the 1st of January 2022.
"None of these announcements has any need for legislation in the current Finance Bill!"
The Government are making these announcements to help increase transparency and accessibility of policymaking. They are part of an effort to both upgrade and digitise the United Kingdom's tax system and tackle avoidance and fraud.
I welcome these announcements and believe that future policy decisions will have more informed input from a wider range of views. We all need more trust in the tax system, and this is certainly going to help.
It's an encouraging move from the Government.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about these new tax consultations or maybe want to know how to contribute to them, call me on 01908 774320 and let's see how we can help. Don't forget to stay updated with our daily social media posts on our Facebook page.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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