The UK government has launched a raft of consultations and tax related documents on its first dedicated Tax Day. The government announced its intention to release consultations and other tax related documents separate to the Budget announcement earlier in the year. Wishing to create greater visibility so that the documentation would not get lost in the Budget release the government has now placed a separate pin in the calendar for the public to be made aware of key consultations on tax measures being considered. Government officials were keen to explain that no new tax measures would be announced and that all the documentation released would be related to policies already in the public domain.

Today’s raft of consultations and calls for evidence covered:

• Updating the tax system to make it easier to deal with. As well as investigating simplification changes, the government are also seeking to establish how the system can become more resilient and better equipped to respond to future crises.
• A tightening of rules around second home owners and their ability to receive reliefs on business rates. Many holiday lets are liable to pay business rates, not council tax, when an owner declares their intention to let their property in the next year. They may also be able to claim relief of up to 100%. The change will close off this ability to reduce their tax liability where they are not a genuine holiday let business.
• Inheritance Tax red tape will be slashed with a simplification of the administration around the completion of inheritance tax forms when probate or confirmation is required. This will take effect from 1 January 2022
• The UK’s commitment to net zero emissions by 2050 was also addressed. The government plans to cut the rate of domestic Air Passenger Duty and increase the number of international distance bands.

The release of an Interim Report on Business Rates gives little away for retailers and the high street that have come under intense trading pressure from the Coronavirus outbreak and a year of lockdown.

Further information can be found on the government website.

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