Owner Managed Business


Following the announcement at the Budget in March that the government would delay the implementation of the PAYE cap on the payable tax credit in the SME R&D scheme until 1 April 2021, the government published a Summary of responses to last years’ consultation and a Second consultation.

On L-Day, the government published a consultation exploring the scope of qualifying expenditure for R&D tax credits, which was trailed at the Budget.  Specifically, the consultation is looking at whether expenditures on data and cloud computing ought to qualify for relief. The consultation document adds that the government is not inviting views on the internationally agreed definition of R&D itself. 

On L-Day the government published a call for evidence to consider the principles and design of a new Stamp Duty and SDRT Framework, which is intended to inform a longer-term modernisation of Stamp Duty and SDRT.  The government is seeking views on what should be the principles and design of a new framework for taxing shares and securities and what should be prioritised in any modernisation programme. 

MPs are considering amendments and new clauses tabled to the Finance Bill, relating to tax reliefs and easements and support measures in response to coronavirus. After report stage third reading debate will take place.

The Chartered Institute of Taxation (CIOT) comments on the the draft legislation on Taxation of coronavirus support payments.

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).

The Labour Party have published their general election manifesto, which includes plans for higher corporation tax, income tax increases for those earning more than £80,000 and taxing capital gains and dividends at income tax rates with a single allowance.