Reforming business rates appeals: check, challenge appeal

This DCLG consultation proposed reform of the current business rates appeal system to a three stage process (check, challenge, appeal).  The CLA supports this proposal providing the appeals system is better resourced to achieve agreement earlier in the process.  A back stop of the appeal being dealt with fully within a year or 18 months, that way a business operator would not be liable to anymore than one rates payment on a disputed assessment.

Reforming the business energy efficiency tax landscape

The CLA responded to the HMRC Business Energy Tax Review Consultation.  The consultation considers simplification of the business energy tax landscape to reduce policy overlap between the Carbon Reduction Commitment (CRC), Energy Saving Opportunities Scheme (ESOS) and the Climate Change Levy (CCL).  The main proposal is to simplify the energy tax landscape by ending the CRC scheme which generally applies to mid and large scale energy using corporate business and instead adapt the CCL to make it a more effective driver of energy efficiency.  Changes to Climate Change Agreements (which provide some energy intensive sectors with reduced rates of CCL) are also proposed.  The change would be revenue neutral and so would suggest a rebalancing of the burned from large businesses onto smaller businesses.  The CLA response highlights concerns around the impact on smaller businesses and the need to provide protection from increased energy costs for energy intensive agricultural businesses and also suggests ways to ensure the levy encourages improved energy efficiency amongst businesses including with incentive schemes.

Incentivising private expenditure on flood defences

The Chancellor announced his intention to introduce tax relief for businesses that part-fund government-led flood defence projects and repairs in the Autumn Financial Statement.  The CLA has responded to the consultation on the proposed tax relief to encourage the Government to widen the scope of the relief to cover all private investment by both businesses and individuals into any approved flood defence scheme, even if there is no Environment Agency funding available for that scheme.

 

Annual Tax on Enveloped Dwellings (ATED): Reducing the Administrative Burden for Business

A response has been submitted to the HMRC consultation on 'ATED: Reducing the Administrative Burden for Business'.  The annual tax on enveloped properties (ATED) regime imposes an annual tax charge on companies that own residential properties valued over £2 million.  Relief from this tax charge can be claimed although an annual return still has to be made.  HMRC have consulted on ways in which the administrative burden can be reduced for those businesses, which have no tax to pay because they are eligible for relief.  We have responded to encourage HMRC to adopt a process that enables properties qualifying for relief to be granted 'exempt status' to alleviate the need to file an annual return.

Inheritance tax: A fairer way of calculating trust charges

A response has been submitted to the HMRC consultation on reforming the inheritance tax regime for trust which included a proposal that each individual should have a "settlement nil-rate band" ("SNRB") which was to be allocated across all trusts they create.  This would be separate to the individual's personal nil-rate band.  In the response we raised concerns about administrative burdens; the effects of changes to existing trusts and how additions to these trusts would be treated; the treatment of life assurance policies held in trust; the treatment of trusts created on death and the lack of a transferable SNRB.

Inheritance tax: A fairer way of calculating trust charges

A response has been submitted to the HMRC consultation on reforming the inheritance tax regime for trust which included a proposal that each individual should have a "settlement nil-rate band" ("SNRB") which was to be allocated across all trusts they create.  This would be separate to the individual's personal nil-rate band.  In the response we raised concerns about administrative burdens; the effects of changes to existing trusts and how additions to these trusts would be treated; the treatment of life assurance policies held in trust; the treatment of trusts created on death and the lack of a transferable SNRB.

Implementing a capital gains tax charge on non-residents

The consultation includes a proposal which would prevent resident homeowners electing which residence is their qualifying primary residence in relation to the Capital Gains Tax exemption for a primary residence.

This could cause considerable difficulties for the many people who live and own a home in the countryside, but who are obliged to work and rent accommodation in towns because that is where the jobs are.

The CLA has responded to the consultation, asserting that the removal of the option to elect a primary residence will have a detrimental effect on taxpayers.

Implementing a capital gains tax charge on non-residents

The consultation includes a proposal which would prevent resident homeowners electing which residence is their qualifying primary residence in relation to the Capital Gains Tax exemption for a primary residence.

This could cause considerable difficulties for the many people who live and own a home in the countryside, but who are obliged to work and rent accommodation in towns because that is where the jobs are.

The CLA has responded to the consultation, asserting that the removal of the option to elect a primary residence will have a detrimental effect on taxpayers.

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