Management of Taxes

 


The Chartered Institute of Taxation (CIOT) respond to the Treasury Committee inquiry in to the Spring Budget 2020

MPs on the Treasury Committee questioned a minister and two of the Treasury’s most senior civil servants in the latest session of its inquiry into the economic impact of coronavirus, held on Wednesday 29 April.

The Finance Bill had its second reading in the House of Commons on Monday 27 April.  The Bill includes measures such as a Digital Services Tax, changes to the controversial Loan Charge and retaining corporation tax at 19 per cent (rather than implementing a previously legislated cut to 17 per cent). It makes some business reliefs more generous to encourage investment but introduces restrictions on the availability of two capital gains tax reliefs - entrepreneurs’ relief and private residence relief.

Further directions issued today by the President of the First-tier tax tribunal, Judge Sinfield, to the Tax Chamber and Tribunal users extending, in relation to certain proceedings, the general stay of all proceedings released on 24 March (as amended and released on 26 March).

This update provides some background to and information about HMRC’s letters and some guidance to help members decide the most appropriate way to respond if a client receives one of the letters.

We have updated the checklist of penalties applying to tax avoidance and offshore tax evasion and non-compliance.

The Chartered Institute of Taxation (CIOT) responds to the consultation document which sets out HMRC’s current thinking and approach to interpreting DAC6.

Part of an occasional series in which CIOT tax experts explain the background to topical issues

HMRC has asked us to share the attached information in relation to “Help to Save”, which is an HMRC savings scheme for people on low incomes who are in receipt of Tax Credits or Universal Credit. It gives a bonus payment from the government of 50p for every £1 on savings paid into the account over a 4 year period.

In response to questioning from the House of Lords Economic Affairs Committee the Financial Secretary revealed that he would shortly be announcing 'clarifications' to the loan charge, including a commitment that HMRC will not apply the loan charge to a tax year which was closed on the basis of fully disclosed information.