A stormy setting for this year’s Spring Statement
There were no major announcements around tax in this year’s Spring Statement speech. However, there were some interesting points around upcoming consultations and draft legislation which were announced in the written ministerial statement released after the speech itself.
There was also clear indication from government that it is continuing its emphasis on ensuring individuals and businesses pay taxes due, on reclaiming taxes which have not been paid and on clamping down on tax avoidance and evasion. There are also clear signs that HMRC is continuing to firm up on any grey areas which were previously not clearly legislated. A policy paper is in progress which will highlight what the government feels it has achieved in this regard.
The Chancellor also made a number of references to Brexit and the possible impacts this could have on the economy and the measures that the government has in place should an orderly and negotiated exit from the EU not be possible.
Here’s our pick of tax-related legislation, draft legislation, consultations and policy papers from the 2019 Spring Statement.
Reminder of what’s coming:
- Making Tax Digital applies to companies with a turnover above the minimum statutory for VAT (£85,000) and comes into force from 1 April 2019.
- Draft legislation on Structures and Buildings Allowance as announced at Budget 2018. This will allow businesses to invest in non-residential structures and buildings in a tax-effective manner.
- Draft regulations around offshore receipts in respect of intangible property.
- A policy paper around the government’s updated strategy on offshore tax compliance which clearly sets out the government’s focus on tax avoidance and tax evasion.
- Upcoming report on review of time limits to be published by 30th of March 2019 and as required by section 95 of Finance Act 2019. This will compare the time limits for recovery of lost tax involving offshore matters. The government will also lay out its thinking behind the charge on disguised remuneration loans.
- CGT Private residence relief consultation will be published on the changes which were announced in Budget 2018 around lettings relief and the final period exemption.
- Call for evidence on simplifying the process of amending a tax return.
- Draft regulations around reforms of NIC, to restrict NIC Employment Allowance to businesses with an employer NIC bill below £100k.
- Draft guidelines and draft legislation around the Enterprise Investment Scheme approved funds regime and HMRC’s proposed policy and practice for approving those funds.
- A consultation paper on R&D tax relief for small and medium-sized enterprises. This follows the announcement around this in Budget 2018. The government says it will be designed to minimise impact on genuine businesses.
- Consultation on the design and implementation of the Digital Services Tax which comes into effect on 1st April 2020.
Calls for evidence:
- Upcoming call for evidence around VAT partial exemption and capital goods scheme as part of the government drive for simplification.
If you’d like to discuss how these consultations might relate to your situation, call us on 01761 241 861 or email us today. We will be pleased to speak by phone or to invite you into our offices in Paulton, near Bristol and Bath, for a consultation.