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.

GN22-14 VAT and construction: Impact of certain planning conditions

If you hire VAT registered builders or tradesman to carry out construction services, it is essential that you know the correct VAT rate applicable to their invoices so that you do not suffer an unnecessary 20 percent increase in your build costs.  This is particularly important if these costs are incurred in a personal, non-business capacity and therefore there is no possibility to recover the VAT you are charged as input tax.

Administration of business rates in England

This discussion paper on Business Rates looks at how property was valued, how often are reviewed, how the bills are set, how the rate is collected and availability of information and suggests options for reform.  It is clear that government want to reduce the financial burden on them in undertaking the reviews.  However individual valuations are important because of the wide variation in rural property, location and business type.  We also expect the Valuation Office Agency to be open and to act fairly.

Pages

Subscribe to RSS - Tax