Government Tax Day releases and what they mean for 2021 / 202207/05/2021
On 25th March (one year on from the start of lockdown), the government announced the UK’s first ever “Tax Day” releasing more-than 30 updates, consultations and documents. These announcements would usually be published at the Budget, but this year, the government decided to release them later in an effort to allow more scrutiny from stakeholders. Amongst the changes are the following:
HMRC will tighten the rules applying to holiday let landlords, ensuring that they have made realistic efforts to rent their properties out for 140 days per year. There has long been a suspicion that many holiday let landlords declare themselves as such to gain exemption from council tax and pay business rates instead. This crackdown will seek to remedy the situation.
The Treasury also plans to cut the rate of domestic Air Passenger Duty on domestic flights, potentially improving connections across the United Kingdom. At the same time, it is seeking views on supporting the UK’s commitment to net zero emissions by 2050, increasing the number of international distance bands. This would see those who fly the furthest (and, therefore, have the greatest effect on the environment) pay the most.
Inheritance Tax (IHT) reporting regulations will also “be simplified” in an effort to make sure that more-than 90% of non-taxpaying estates will need to complete IHT forms when probate or confirmation is required.
Jess Norman, the Financial Secretary to the Treasury, said: “We are making these announcements to increase the transparency, discipline and accessibility of tax policymaking. These measures will help us to upgrade and digitise the UK tax system, tackle tax avoidance and fraud, amongst other things.”
To learn more about the changes to tax for the upcoming year, and make sure you do not pay more than you need to, contact our friendly team of experts on 0121 456 0190.