Following the announcement of the United Kingdom’s Spring 2021 Budget on the 3rd March 2021, the Government has since released an outline of their future Tax Administration Strategy through their Tax Policies and Consultations for Spring 2021, released on 23rd March 2021. This strategy outlines a future pathway for the UK’s tax administration and tax policy development. The aim of said proposed tax administration is to support wider improvements in the UK tax systems. Proposed measures include:
- Creating a digitalization of the tax system through investments in digital infrastructure. Details of this can be seen further in the Government-supported article ‘Making Tax Digital’.
- A planned reduction of reporting requirements for inheritance tax through the simplification of reporting regulations from January 2022.
- An introduction of mandatory professional indemnity insurance for all tax advisers
- Enactment of measures to ensure the reduction of tax avoidance through closing down companies that promote avoidance schemes and disqualifying their directors
- Adoption of measures that ensure taxpayers comply with UK tax obligations which ensure that taxpayers comply with their UK tax obligations regardless of where their income or gains are made – aka a limitation of ‘Safe Havens’
- A review of business rates, including the overall level of tax, revaluations, administration, and billing, and alternatives to business rates
- Further technical updates to the UK pension tax rules
- The implementation of a UK Emissions Trading System to replace its participation in the EU Emissions Trading System
- An introduction of new rules to prevent value shifting value-added tax (VAT)
- An introduction of sanctions to try and prohibit tobacco duty evasion and the sale of illicit tobacco
- An update to the transfer of pricing requirements for UK businesses
- An extension of the social investment tax relief sunset provision until April 2023
Further information can be found via government communications and downloadable resources such as their Tax Policies and Consultations.
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Our consultants obtain extensive experience across a variety of taxation matters and ensure they are continually up to date with new legislation. Utilising this knowledge we strive to support our clients in advising on best practice with any new regulations that have been released! If you have any queries about any of the above mentioned, or in fact any other business-related queries, don’t hesitate to contact us! Get in contact today by calling +44 (0)207 060 0835, emailing us at firstname.lastname@example.org or filling in a contact form below, and one of our consultants will be happy to advise accordingly!