royalties.
The OTS says it will also be considering data provided by investment and wealth managers, including information about chargeable gains, excess reportable income, interest, dividends and equalisation payments.
A call for evidence to inform the review is set to launch “shortly” according to the announcement, with the OTS aiming to publish its findings in the summer of 2021.
The OTS review follows a similar one it conducted in 2019 looking at the use of third-party data in relation to self-employment and property tax. Its final report outlined three areas for HMRC to explore further:
The possibility of HMRC offering a fully integrated individual tax account.
Govt urged to make wealth tax fair and proportionate
17 December 2020 |
The proposed tax would apply to all wealth, including homes and other property such as farms
A possible wealth tax to recoup Covid-19 funds must be fair and proportionate on rural and farming businesses, Saffery Champness says.
This year has seen government issue out much needed support to help keep businesses afloat and people in work during the Covid-19 pandemic.
Against a backdrop of pledges not to raise income tax, national insurance contributions or VAT, focus has centred around taxing transfers or disposals of assets.
Inheritance Tax and Capital Gains Tax have received particular attention, as well simplification of those taxes by the government’s own Office of Tax Simplification (OTS).
Danby Bloch: Reforming the ‘bad relief’ is a bad idea
By Danby Bloch 15
th December 2020 10:09 am
Capital gains tax is in the cross hairs of chancellor Rishi Sunak’s aim and could be subject to some major changes, one being business assets disposal relief – previously called entrepreneurs’ relief. It was only changed last year, but that hasn’t stopped the Office of Tax Simplification continuing to gun for it.
A quick recap of BADR if you need one: you will only pay 10 per cent CGT on disposal of a qualifying business asset. If you are disposing of company shares or securities, its main activities must be trading (for example, not an investment business) or it should be the holding company of a trading group.
| UPDATED: 14:07, Mon, Dec 14, 2020
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Chancellor Rishi Sunak is facing mounting pressure from those in his own party to not raise taxes in order to pay for the coronavirus pandemic and the potential impact of a no deal Brexit. Trade talks with the EU remain deadlocked with the transition period – and deadline for a deal – at midnight on December 31. Whitehall departments have devised resilience deals to aid the agriculture, fishing, automotive and chemicals industries, all of which could face tariffs and disruption if free trade between the UK and EU ends.
Corporate finance advisers report a surge in inquiries from small business owners keen to sell their companies before a likely increase in capital gains tax (CGT) in the new year.