News

A proposed carbon border tax could play a crucial role in achieving net zero emissions but will only be effective if it complements effective carbon pricing within the UK, the Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT) have warned.

The new Finance Bill published today introduces three new taxes, taking the total number of taxes introduced this century to 24. Apart from two one-off levies, and the Health and Social Care Levy (which was repealed before it came into effect, and is not included in the total above), none of these or any other taxes have been abolished over this period.

The Chartered Institute of Taxation (CIOT) has welcomed the announcement that the Government will introduce full capital expensing, but said that doing so for just three years initially will create some uncertainty for business which is unwelcome.

The Low Incomes Tax Reform Group (LITRG) has welcomed the confirmation in today’s Budget that it will render void assignments of income tax repayments with effect from today (15 March 2023). The measure helps to address concerns raised by LITRG about the unacceptable behaviour of some tax refund companies who were found to have been submitting assignments to HMRC which channeled multiple tax refunds to them. In most cases the taxpayer had not signed the assignment intentionally or – in the case of some online applications - had not signed it at all. The measure was first announced on 11 January 2023 and LITRG had feared that a long lead in time for its introduction would have led to some tax refund agents upping the ante before the assignments loophole was finally closed by legislation.

Figures in today’s Budget documents estimate that the government’s deferral of Making Tax Digital for Income Tax Self-Assessment will cost the Exchequer over £1.75 billion. CIOT and ATT believe that the programme’s benefits might have begun to flow more quickly if the Government had consulted earlier and worked more closely in partnership with stakeholders. It’s not too late to consult widely on how the government’s objectives can be achieved, say the two bodies.

The Chartered Institute of Taxation (CIOT) has cautiously welcomed a number of Budget measures aimed at simplifying the tax system. However the Institute added that retaining the Office of Tax Simplification (OTS) would have been a more effective way for the Government to demonstrate a commitment to tax simplification.

The Low Incomes Tax Reform Group (LITRG) has welcomed the announcement in today’s Budget that the Money Purchase Annual Allowance (MPAA) will increase from £4,000 to £10,000 a year from 6 April 2023. But LITRG is warning savers that they still need to notify their pension providers if they trigger the MPAA.

The Chartered Institute of Taxation has welcomed changes announced in the Budget which will separately identify crypto assets in self-assessment tax returns’ capital gains tax pages from 2024.

The Low Incomes Tax Reform Group (LITRG) welcomes today’s announcement regarding the Help to Save savings scheme, extending it for 18 months. The account is available to certain benefit claimants and pays a tax-free bonus of up to 50% of the amount saved. Eligible individuals may now open an account until April 2025. 

The Chartered Institute of Taxation (CIOT) has warned that the imminent reduction of the annual exemption for capital gains tax will see hundreds of thousands of people become liable to pay tax they may not even be aware of, and urged the Government to publicise the change.