Following a call for evidence, the government has decided not to move ahead with proposed changes to 'Income Tax Self Assessment (ITSA) registration for the self-employed and landlords'. Making taxpayers register early for taxes is likely to cause more problems than it would solve.
SME Tax News
In Altan Goksu v HMRC [2022] TC08536, the First Tier Tribunal (FTT) allowed a deduction for capital losses brought forward despite no evidence that they had been notified to HMRC over twenty years earlier. The tribunal reduced the amount as it could not be supported by the taxpayer.
In SC Properties Limited and Richard Cooke v HMRC [2022] TC08537, the First Tier Tribunal (FTT) decided a property was sold by individuals not a partnership. As no partnership existed any CGT and SDLT relief that was claimed on its disposal was denied.
The Office of Tax Simplification (OTS) has published a new policy paper ‘OTS Review of tax simplification’ setting out what drives tax complexity and how officials making tax policy can work to prevent or mitigate that complexity.
HMRC have published their Report and Accounts and other documents for 2021-22. The accounts report revenues of £731.1 billion, a 20.1% increase since 2020-21, although 23.8% of this (£173.8 billion) remained unpaid at the year-end. Its audit was qualified due to high levels of error and fraud.
HMRC have published their list of tax avoidance litigation decisions for the 2021-22 year. This identifies the results in litigation decisions where HMRC considered that tax avoidance was involved. The summary indicates a high win rate for HMRC.
A growing number of commentators are noting that investing in a crypto-asset, such as, for example bitcoin or stablecoin is in reality no different to investing in a 'get rich quick' Ponzi scheme. Its noted that decentralised finance (DeFi) based on blockchain technology has created a massive shadow banking system. There are signs that this industry unfolds as interest rates increase.
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This week questions have been asked as to whether some of the Conservative leadership candidates' plans for tax cuts are viable. Others are asking how can tax help us reach Net Zero? What do you think about crypto-assets: uncanny investment opportunities or no better than a Ponzi Scheme?
The Climate Change Committee (CCC) has published ‘Progress in reducing emissions 2022, Report to Parliament’. In part, it calls on HM Treasury to review the tax system as to how it can best support the transition to Net Zero.
The Office for Budget Responsibility (OBR) has published a new report, ‘Fiscal risks and sustainability’ which highlights current and potential pressures on the UK public finances, including how this may affect taxes.