CONSULTATIONS ISSUED ON TAX DAY BY TREASURYApr 19 2021
The Treasury typically issue a bundle of tax consultation documents on budget day. This year, however, they chose to delay the publication until three weeks after the budget. We were expecting the consultation documents to include significant CGT and IHT changes, but these have yet again been delayed.
The Treasury has accepted several recommendations by the Office of Tax Simplification (OTS) on simplifying IHT reporting. From the 1st of January 2022, over 90% of non-taxpaying estates each year will no longer have to complete IHT forms for deaths when probate is required. The government will also consider introducing a new digital system for IHT and probate reporting.
Another consultation is seeking views on modernising the tax administration system, including changes to the payment dates for those outside PAYE. It would appear that HMRC is reconsidering a possible pay as you go method for the self-employed that was initially consulted in 2016.
Among the documents published as an interim report on the government’s Fundamental Review of Business Rates in England, which sets out a summary of responses to last year’s call for evidence. The final report will be published in the Autumn. The government will also legislate to tighten tax rules for second homeowners meaning they can only register for business rates (and business rates relief) if their properties are genuine holiday lets. This will close a loophole that allowed some second homeowners to avoid paying council tax on that property.