Tax Day 2021 summary

Produced by Tolley
Tax Day 2021 summary

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Tax Day 2021 summary
  • Introduction
  • Personal tax
  • Social investment tax relief (SITR): responses to a call for evidence
  • Business tax
  • Transfer pricing documentation
  • Notification of uncertain tax treatment by large businesses
  • Reform of the taxation of securitisation companies
  • Employment tax
  • Tackling disguised remuneration tax avoidance
  • More...

Introduction

It was a year ago today that the first lockdown was introduced in an address to the nation by the Prime Minister. The day-to-day mundane routine associated with lockdown tends to bring forth sometimes undue excitement at any event remotely out of the ordinary; something to do with nature abhorring a vacuum. Thus, the announcement of ‘Tax Day’ has been hailed in some quarters as the most exciting thing since Wile E Coyote finally caught the Road Runner and had him for breakfast (OK, possibly that didn’t really happen). To be fair to the Treasury and HMRC, they have played this down. The Tax Day documents are collected together on HMRC’s website under the heading ‘Tax policies and consultations (Spring 2021)’, with no mention of ‘Tax Day’.

It is in no way intended here to diminish the importance of these published documents. On the contrary, the publication in previous years of consultation documents and calls for evidence on Budget Day itself inevitably meant that they rather got lost amidst the natural interest in what was happening immediately. The decision to publish them separately is to be applauded (though probably not on your doorstep at 8pm using pots and pans!). It is important for those in tax practice to be aware of tax policy plans for the future. Is Tax Day more important than Budget Day itself, as some have suggested? We rather think not, but will leave others to decide whether this of publications is truly deserving of the soubriquet ‘Tax Day’.

Of the documents, many involve ideas previously floated, such as the proposal to introduce a requirement for tax advisers to hold professional indemnity insurance, for example. The plan to reduce administrative burdens for those dealing with inheritance tax, publicised in the national press, is rather hidden away in the documents, but from 1 January 2022, over 90% of non-taxpaying estates will no longer have to complete IHT forms for deaths when probate or confirmation

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