Spring Statement 2018: Tax topics under consultation

The Autumn Budget forewarned us of a range of upcoming consultations. These will relate to matters scheduled for Finance Bill 2018-19, and aclist of tax-related consultations outstanding and expected can be found below.

On-going work of OTS

  • Review of whether capital allowances should be replaced with accounting deprecation (currently asking for information from medium sized businesses)
  • Scheduled review of IHT

Existing closed consultations awaiting a response document

  • Corporation tax and the digital economy position paper- closed 31 Jan 2018
  • Taxing gains of non-UK residents owning UK immovable property - closed 16 Feb 2018
  • Draft regulations for income tax aspects of making tax digital – closed 10 November 2017
  • Business risk review – closed 6 December 2017
  • Amendments to VAT regulations and a draft VAT notice on MTD for VAT closed 9 Feb 2018
  • Simplification of PAYE settlement agreements – closed 22 Feb 2018

Ongoing consultations shortly to close

  • VAT and vouchers – closes 23 Feb 2018
  • MTD (making tax digital): interest harmonisation and sanctions for late payment – closes 2 March 2018
  • Plant & machinery lease accounting changes – closes 28 Feb 2018
  • Corporate interest restrictions: consultation on leases – closes 28 Feb 2018
  • Royalty withholding tax – closes 23 Feb 2018
  • Rent-a-room relief – closes 23 Feb 2018
  • Tackling the hidden economy: public sector licensing – closes 2 March 2018

Forthcoming consultations (with reference to the section of the red book where they are itemised)

  • 3.9 How to make the taxation of trusts simpler, fairer and more transparent
  • 3.14 Extending the scope of tax relief available to employees and the self-employed, to self-funded training
  • 3.55 Technical consultation on allowing a petroleum revenue tax deduction for decommissioning costs incurred by a previous licence holder.
  • 3.61 Following the OTS review of VAT, there will be consultation on the design of the VAT registration threshold to remove disincentives to expansion currently created by the threshold.
  • 3.72 Consultation on the best ways to prevent UK traders or professionals from avoiding UK tax by fragmenting their income between unrelated entities.
  • 3.84 Consultation on whether to simplify and harmonise penalties and interest due on late payments and repayments.
  • 3.87 Consultation on the most effective means of introducing security deposit legislation for CT and CIS (with effect from 6 April 2019)
  • 4.69 The Government expenses authorities in the Cambridge, Milton Keynes, Oxford corridor to use existing mechanisms of Land value capture and new powers (subject to consultation) to capture rising land values from additional public investment (view letter )
  • 5.14 Developer contributions (remove s106, speed process of setting and revising CIL, allow authorities to set rates reflecting increases in land values between existing and proposed use, change indexation of CIL rates to house price inflation rather than build costs.
  • 5.36 Consult on barriers to landlords offering longer more secure tenancies to those tenants who want them.

Ongoing consultations closing after 13 March

  • Employment status – closes 1 June 2018
  • [LBTT (Land and buildings transaction tax) first time buyer’ exemption – closes 23 March 2018 A Scottish Government consultation]
  • Review of corporate intangible fixed asset regime – closes 11 May 2018
  • Extending time limits for assessment of offshore tax errors – closes 14 May 2018