Hello,
The new Chancellor, Rachel Reeves, will present her first budget in October and this week published details of some of the new government’s tax reforms. We take a closer look at the changes to Furnished Holiday Letting (FHL) and non-domiciled taxation.
We now have some detailed proposals on the abolition of the Furnished Holiday Letting (FHL) regime, we have created a subscriber briefing which examines ‘the small print’ so far. Ideal reading for accountants and advisers as they relax on holiday (probably in FHLs!)
The non-domiciled individual’s regime will be replaced by a residence regime from 2025. ‘Loopholes’ in the proposals created by the last Chancellor in the Spring Budget will be removed. There will be various reviews and consultations on the reform of the rules rebasing of assets, for offshore trusts and a review of the troublesome anti-avoidance legislation for the Transfer Of Assets Abroad and Settlements.
VAT will apply to private school fees and these schools also face the removal of business rates relief.
What other measures might we expect in the future? It seems that the new Chancellor could reform just about any area of tax including business rates relief. Anti-avoidance is a hot topic.
More news and updates below. If you are new to us, then check out our 'Site Tour'. If you are a subscriber, check out our Rolling Tracker in the Editor's choice.
If you are still looking for a last minute getaway, scroll down to the very bottom.
Nichola & the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News
Autumn Budget 2024 announced with a raft of new measures
The Chancellor, Rachel Reeves, has announced that the first budget of the new parliament will be held on 30 October 2024. We consider the Chancellor's options to repair a £22 billion 'hole' in the public finances. A range of measures that are in line with Labour's manifesto were also announced this week. We take a closer look at what is to come.
Abolition of the FHL regime: At a glance
HMRC have published draft legislation detailing how the abolition of the Furnished Holiday Letting (FHL) rules in April 2025 will operate. What does this mean, at a glance?
Non-domiciled individuals: the new proposals
The new government has confirmed its policy intention of removing the concept of domicile status from the tax system and will implement a new residence-based regime
Call for Evidence on carried interest
The Chancellor, Rachel Reeves, has committed to taking action concerning the ‘carried interest’ loophole and has issued a Call for Evidence. In particular, the government seeks detailed engagement with expert stakeholders.
New cross-border transitional tax rules for multinationals
HMRC have published a policy paper, 'Multinational top-up tax and domestic top-up tax — transitional country by country reporting safe harbour anti-arbitrage rule'. The draft legislation aims to prevent taxpayers from engaging in avoidance arrangements to benefit from the transitional country-by-country reporting (CbCR) safe harbours.
Grants open to Welsh school children
The Welsh Government has announced the opening of applications for The School Essentials Grant. This provides cash for schooling to families on lower incomes and those who qualify for certain benefits.
Editor's Choice
Abolition of the FHL regime: Briefing
NEW: HMRC have published draft legislation and related notes detailing how the abolition of the Furnished Holiday Letting (FHL) rules in April 2025 will operate. We consider the practical impact of the loss of the FHL rules and provide some essential planning points.
Client briefing on Reform to the Non-Domiciled Individuals' regime
It was proposed at Spring Budget 2024 that the non-domicile tax regime and current version of the Remittance Basis will be abolished on 5 April 2025 and replaced with a new regime. We look at the latest proposals
Finance Acts in 2024: Tax Update & Rolling Tax Planner
UPDATE: Explore our tax guides with this amazing CPD special. Our rolling tracker summarises the key tax announcements of the year and provides helpful links to drill down to further guidance on each topic.
Guides & Updates
Self-Employed
Barristers: Tax Overview
How are barristers taxed? What expenses can barristers claim for tax purposes? Are there special rules for taxing income? What are the VAT rules for barristers? How is goodwill treated?
Campsites & Caravans: Tax Overview
What expenses can campsite owners claim for tax purposes? How is income taxed? Are there special tax and accounting rules when land is used for camping on a seasonal basis? What are the rules for caravans and campervans? What are the VAT rules?
Directors & Companies
Can my company build my house?
What are the tax consequences if my company builds a house for me? What are the issues for Income Tax, PAYE, NICs, Corporation Tax, ATED, CGT, IHT and VAT.
Tax Planning for Directors
Editor's choice: some of our favourite tax guides, toolkits & checklists for directors.
TAAR: Distributions on winding up (anti-phoenixing rules)
When does the TAAR apply? Who does it affect? Can you apply for tax clearance? Do the rules affect striking off?
An Index to Reorganisations, Demergers & Share transactions
What is a company reorganisation or reconstruction? What tax reliefs apply to a company reorganisation, a share for share exchange, reconstruction or other transaction involving shares?
Issuing new shares (planning and pitfalls)
A practical guide on how to issue new shares in a company together with a summary of some of the pitfalls if an issue fails to qualify for tax purposes.
Land & Property
Buy-to-let ownership: personal v. company?
What is the most tax-efficient way to own buy-to-let property? Personally or via a company? What are the income and Corporation Tax, CGT, IHT, ATED, SDLT or VAT issues? With tips on profit extraction and other planning points, case studies and links to further guidance.
Private Client & Estate Planning
Trusts & Estates: Ten-year charge reporting requirements
What is the ten year charge (or principal or periodic charge) and when does it apply?
Estates: Income Tax and Capital Gains Tax
How do executors deal with income and capital gains arising on the deceased’s estate? What allowances and reliefs are available?
VAT News & Cases
VAT on private school fees and removal of business rates relief
From 1 January 2025, all education services and vocational training supplied by a private school or a 'connected person', for a charge, will be subject to VAT at the standard rate of 20% as will boarding services closely related to this type of supply.
Deregistration
When do I have to deregister for VAT? When can I voluntarily deregister? What penalties might HMRC issue if I am late notifying them of mandatory deregistration?
Correcting VAT errors
What are the VAT error correction time limits? Can you correct errors through the VAT return? Do you have to notify HMRC?
Tax Tools & Calculators
Tax tools & calculators
UPDATE: 2024/25 versions available now. We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- NEW: CPD: Change of basis periods: Transitional rules 2023-24 Returns
- CPD: VAT Penalties Update
- CPD: CGT Reporting and payment deadlines
More at CPD Index
Tax Queries?
UK Agent for registration of Overseas Entities
Do you require assistance in the registration and verification of an overseas entity that owns UK land or property?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 25 July 2024
- Agent update: July 2024
- The Budget Responsibility Bill
- Court of Appeal rules that General Electric was not dual resident in the UK and US
- Insufficient evidence of R&D costs for overseas sub-contractor
- Corporation Tax relief for awards of shares to employees
- Sales/turnover: Tax compliance
- Creative Industries: Film Tax Relief and Television Tax Relief
- Research & Development Tax Reliefs
- Childcare: Employer provision UPDATE
- Named tax avoidance schemes, promoters, enablers UPDATE ...More
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Last Minute get-away?
Holiday home: cottage with beautiful views and private woods
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