Yesterday was the government's "Tax Administration and Maintenance Day" on which they published several tax consultations and responses to consultations. They also published a policy paper outlining a number of tax policy reforms.
The main items of interest for the Private Client sector are the responses to the Office of Tax Simplification's ("OTS") review papers on capital gains tax ("CGT") and inheritance tax ("IHT"). Some bullet points on the main announcements are below.
- OTS Review of CGT – the government has published a response to the OTS's Second Report on CGT (importantly, however, not the First Report – see below). Five recommendations have been accepted, which are:
- the development of a Single Customer Account for reporting and storing CGT data;
- the extension of the deadline for CGT reporting on UK property from 30 to 60 days (already announced in the Autumn Budget);
- the extension of the "no gain, no loss" window on separation and divorce (a consultation document will follow next year);
- the expansion of the Rollover Relief rules for compulsory purchase orders; and
- the improvement of HMRC guidance in eight specific areas (see response document for details).
The OTS's First Report on CGT contained recommendations on the design of CGT, including the rates of tax, the annual exemption and the CGT-free uplift on death. This has not yet been responded to. Reforms in these areas would clearly have a wide-ranging impact and the government may have decided that now is not the time.
- OTS Review of IHT – the government has published a response document announcing that they have decided not to proceed with any of the OTS's recommendations at this time.
Other items of interest are:
- the publication of a Call for Evidence on income tax self-assessment registration for landlords and self-employed;
- a consultation on SDLT reliefs;
- a new stakeholder forum on tackling offshore tax non-compliance; and
- the implementation of the OECD Mandatory Disclosure Rules (to replace the UK's "DAC6" regime) – consultation and draft legislation are published.