Solicitors have been advised to inform clients about the “likelihood” of negative interest rates and the implications to money held in client accounts. Read More
Payment holidays on credit cards, car finance, personal loans and pawned goods have been extended following the Government’s announcement of a second lockdown from Thursday 5 November. Read More
HM Revenue & Customs (HMRC) has received 54,800 tax relief claims from individuals for working from home using a new online portal. Read More
Some 445 heritage organisations affected by Covid-19 are set to receive more than £103 million in affordable loans and grant funding, it has been revealed. Read More
The Government’s spending watchdog, the National Audit Office (NAO), has warned that up to 60 per cent of businesses may not pay back the 100 per cent Government-backed Bounce Back Loans Scheme (BBLS) because of fraudulent applications and minimal credit checks. Read More
Almost seven in 10 small businesses have launched an e-commerce website or introduced contact-free point of sale (POS) technology to adapt to the coronavirus pandemic, it has been revealed. Read More
The second stage of the Self Employment Income Support Scheme (SEISS) is now open, and applications must be submitted before the deadline on Monday 19 October 2020. Read More
According to the latest research, two in five businesses expect to make redundancies this year. Read More
The Chancellor, Rishi Sunak, has commissioned the Office of Tax Simplification (OTS) to undertake a review into how Capital Gains Tax (CGT) is paid by small businesses and individuals.
It is estimated that the UK Government has already incurred hundreds of billions of pounds in costs in its economic fight against the Coronavirus and it is clear that it will need to recover this spending in some way.
The decision to commission a review of CGT has left many concerned of a ‘stealth wealth tax’, using CGT as a means of increasing the tax bill of small businesses and those with high-value assets.
The OTS investigation into CGT is said to be wide-ranging and will include a look at all of the allowances, exemptions and reliefs associated with CGT, the treatment of losses within the tax and its interaction with other levies, such as inheritance and income tax. This review will also look at whether current rules alter taxpayer’s behaviour and encourage inappropriate actions to be taken.
Many fear that the extensive free rein given to the OTS may be a precursor for big changes in a Budget later this year.
One suggestion is that the Chancellor may be seeking an equalisation of CGT and income tax rates. At present, the highest rate of CGT for most assets, apart from property, is 20 per cent, whereas the top rate of income tax is 45 per cent.
As an alternative, some have suggested that the Chancellor could seek a flat rate of CGT rather than the five rates that currently exist (0, 10, 18, 20 or 28 per cent).
The review may also look to close loopholes and ambiguities in existing reliefs to ensure that taxpayers do not get an advantage from structuring their estate and disposals around CGT.
Another area of potential reform is the capital gains uplift, which currently applies when a person inherits assets, which allows assets to be acquired at the market value on the date of death, rather than the amount originally paid.
This could tie in with the Government’s previous review of Inheritance Tax (IHT), during which the OTS recommended the uplift be removed in cases where IHT exemptions or reliefs apply.
IHT continues to be an area of contention and one that has been explored numerous times. However, it may also be in the spotlight as the Government seeks to recover the multi-billion-pound cost of COVID-19.
As part of the OTS investigation, Rishi Sunak has also tasked the OTS with looking at how CGT is paid by small businesses. This will include “the position of unincorporated businesses and standalone owner-managed trading or investment companies”.
It is important that all taxpayers continue to monitor the Government’s plans for taxation and seek advice if any future changes affect their financial affairs or the passing of wealth to future generations.
Updated guidance from the Department for Education on apprenticeships during the Coronavirus crisis has been published and contains a number of announcements relating to employment arrangements for apprentices.
These updates include confirmation that:
Full details of these updates can be read here.
The announcements come shortly after the Chancellor announced additional funding for apprenticeships at the Summer Economic Update on Wednesday 8 July 2020.
The apprenticeships funding will provide £2,000 to employers in England for every apprentice hired under the age of 25 and £1,500 for each newly-hired apprentice aged 25 or older.
The new funding is in addition to schemes already in place to support employers in taking on apprentices.