Weekly tax highlights ― 19 April 2021

Produced by Tolley
Weekly tax highlights ― 19 April 2021

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

  • Weekly tax highlights ― 19 April 2021
  • Finance Bill 2021
  • Government amendments to Schs 7 (hybrids) and 22 (freeports: SDLT)
  • Coronavirus (COVID-19)
  • Self-Employment Income Support Scheme ― Treasury Direction under Section 76 of the Coronavirus Act 2020
  • Coronavirus Job Retention Scheme ― Treasury Direction under Section 76 of the Coronavirus Act 2020
  • Direct taxes
  • Employer Bulletin: April 2021
  • Indirect taxes
  • Penalty for failure to pay deferred VAT: updated guidance on VAT deferral new payment scheme
  • More...

Finance Bill 2021

Government amendments to Schs 7 (hybrids) and 22 (freeports: SDLT)

The Government has tabled two sets of amendments to Finance Bill 2021 to ensure that: (a) the Sch 7 changes to the hybrids rules work as intended, and (b) property acquisitions in freeport tax sites using alternative finance arrangements will benefit from freeports SDLT relief in the same way as transactions using conventional finance (Sch 22).

To see these amendments set out in the text of the Bill, along with a summary of the changes, see Finance Bill Tracking Service, Finance Bill 2021.

Coronavirus (COVID-19)

Self-Employment Income Support Scheme ― Treasury Direction under Section 76 of the Coronavirus Act 2020

A further Treasury Direction in relation to SEISS has been published in relation to the fourth grant under the Self-Employment Income Support Scheme (SEISS) which was established amid the coronavirus (COVID-19) pandemic. This direction modifies and extends the effect of the SEISS to reflect the latest changes, covering the period from 1 February 2021 to 30 April 2021.

HMRC has also updated its suite of SEISS guidance accordingly. The fourth taxable grant is worth 80% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits and capped at £7,500 in total.

Applications for the fourth grant will open at the end of April 2021. HMRC explained that eligible persons with be contacted by email, letter or within the online service in mid-April and provided with a date on which claims can be submitted. To be eligible for the fourth grant, taxpayers must be self-employed or a member of a partnership and must have traded in the last two tax years and have suffered a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 February 2021 to 30 April 2021.

Coronavirus Job Retention Scheme ― Treasury Direction under Section 76 of the Coronavirus Act 2020

A further Treasury Direction in relation has also been published in

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