Measure
Amanda Tickel, head of tax policy, comments on the publication of Tax Day consultations:
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The announcements on 23 March 2021 provide a useful roadmap of the tax changes we could expect to see in future. Whilst this was mainly a ‘spring clean’ exercise to conclude or continue existing consultations, we did see some new proposals as well as announcements of further consultations on tackling tax avoidance. The publications included:
Prior to the announcements we saw a focus on investment incentives at the Budget and the immediate publication of a consultation on Research and Development (R&D) tax reliefs. The stated objectives here are ensuring that the UK remains a competitive location for cutting edge research, that the reliefs are fit for purpose, and that taxpayer money is effectively targeted. The next steps from the recent consultation on the scope of qualifying expenditures for R&D tax credits will be considered making this a wide-ranging review. The government also previously announced its consultation on the banking sector to ensure that the combined rate of tax on banks’ profits are competitive with major competitors in the US and the EU, and that the UK tax system is supportive of competition in the UK banking sector.
Consultations announced have a closing date of between 1 June and 13 July, so we expect a number of concrete proposals in the summer and we could see legislation by the Autumn – leading to a fuller than expected Budget.
Tax policy has a big part to play in the future of the UK economy, influencing individual and business behaviour. Specific fiscal measures are always higher profile, but the administration and compliance aspects of tax announced are equally important for the efficient management of the tax system and ease of doing business. Businesses and individuals need to engage with these consultations if they want to see a UK tax regime that reflects their needs.
Tax policy has a big part to play in the future of the UK economy, influencing individual and business behaviour. Specific fiscal measures are always higher profile, but the administration and compliance aspects of tax announced are equally important for the efficient management of the tax system and ease of doing business. Businesses and individuals need to engage with these consultations if they want to see a UK tax regime that reflects their needs.