Income Tax Reporting and the Digital Era

Making Tax Digital (“MTD”) for Income Tax has been talked about for many years now. The idea that the tax return process can be completed by third parties providing all relevant information to HMRC is still a long way off, but it is the direction HMRC are heading. A pre-populated tax return sounds like a great solution and is what HMRC hope to achieve but there are lots of moving parts.

One third of Scottish taxpayers are unaware of tax changes made by the Scottish Parliament

6 April 2021 signalled the start of another new tax year. Perhaps an appropriate time therefore to reflect on a recent review of awareness amongst Scottish taxpayers which found that 33% of those surveyed were unaware that the Scottish Parliament had made changes to the tax system since 2015, with a more worrying 26% completely unaware that the Scottish Parliament had powers to make changes to income tax rates in Scotland. This has resulted in professional bodies calling on Scotland’s political parties to improve awareness of devolved taxes.

What came of Tax Day 2021?

The Treasury and Chancellor previously suggested that more effective tax changes would be introduced after undertaking consultation and seeking comment on the output from such consultation exercises. Therefore, instead of this being lost in the Budget Announcement a separate date, Tax Day, was set for the consultation announcements to be delivered – 23 March 21.

Budget 2021 – will we see changes to Tax rates and reliefs?

Before the scheduled Autumn budget, advisors and taxpayers alike were bracing themselves for a hike in the rate of Capital Gains Tax (“CGT”) as well as the very real possibility that some reliefs might be withdrawn altogether.  For example Business Asset Disposal Relief (“BADR”), known previously as Entrepreneurs’ Relief.  When the budget was pushed back to Spring there was an audible sigh of relief but with a number of recent budgets containing surprise announcements, it is important to consider any possible changes ahead of budget day on 3rd March.   

Brexit changes for UK residents with EU properties

Following our previous blog on the personal tax impact of Brexit, it seems those who own property in France or Spain may be particularly affected by Brexit.

Business Asset Disposal Relief  – When is a Preference Share an Ordinary Share?

Business Asset Disposal Relief (BADR), previously Entrepreneurs’ Relief, reduces the Capital Gains Tax rate on qualifying BADR Gains to 10%, as opposed to the current 20%.

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