Highlights from the broader tax news week ending 8 September, which includes: date confirmed for Autumn Budget; Scottish Government consults on tax policy; Eclipse Film Partnership members given six months to settle; FTT needs more resource to tackle delays; MTD regulations laid before parliament; new member for OECD BEPS framework and CTF reminder for teenagers.
Chancellor confirms Autumn Budget and Spending Review
The Chancellor of the Exchequer confirmed on 7 September that the Autumn Budget will be announced on 27 October 2021. The Spending Review 2021 will also conclude on 27 October, setting out a three-year plan for UK government departments’ resource and capital budgets for 2022/23 to 2024/25 and the devolved administrations’ block grants for the same period.
Regulations extending MTD VAT laid before parliament
Legislation enacting the extension of Making Tax Digital (MTD) for VAT was laid before parliament on 7 September. Under the Value Added Tax (Amendment) Regulations 2021, SI 2021/986, it is confirmed that VAT-registered businesses with a turnover less than £85,000 will be subject to the MTD VAT rules from their first VAT period starting on or after 1 April 2022.
OECD/G20 BEPS framework gains another member
Togo has joined the OECD/G20 inclusive framework on BEPS, bringing the total number of members to 140. Togo, together with existing inclusive framework member, Barbados, has also added its support to the two-pillar solution to address the tax challenges arising from the digitalisation of the economy. This means that 134 members of the inclusive framework support the statement as at 31 August 2021.
Scottish government consults on tax policy
The Scottish Government has issued a consultation entitled Tax policy and the Budget - a Framework for Tax. It includes a call for evidence seeking views on the overarching approach to tax policy, through Scotland’s first Framework for Tax, and how the Scottish Government should use its devolved and local tax powers as part of the Scottish Budget 2022-23. The deadline for responses is 26 October 2021.
FTT needs more resource to tackle delays, says IFS
The Institute for Fiscal Studies’ Tax Law Review Committee (TLRC) has recommended that the Tax Chamber of the First-tier Tribunal (FTT) increases its number of sitting days and ensures judges have sufficient paid writing and preparation days to “realistically discharge” their duties. In a new report looking to the next 10 years of the FTT, the TLRC outlines the key concerns of current users as delays, lack of communication, lack of engagement by some judges and the allocation of cases to judges with the appropriate knowledge. The report offers several recommendations to help the FTT reduce delays, including additional resource, shorter decisions, more robust case management and, in some cases, reducing the number of levels of appeal. Read the report in full.
18-year-olds urged to check if they have CTF
A year on from the first child trust fund (CTF) maturing, HMRC is urging teenagers to check whether they have one of the savings accounts. Around seven million CTF accounts were set up by parents and HMRC for children born between 1 September 2002 and 2 January 2011, using government-provided vouchers. The aim of the scheme was to provide young people with a sum of money when they turned 18. HMRC estimates that 55,000 CTF accounts are maturing each month, but many remain unclaimed. The accounts were set up for children whose parents were in receipt of child benefit, and prospective claimants can check if an account exists by using HMRC’s online tool.
Eclipse Film Partnership members given six months to settle
HMRC has announced it is offering a settlement opportunity to members of the Eclipse Film LLPs. This follows Tax Tribunal and Court of Appeal decisions that the no.35 LLP was not trading and members were not entitled to tax relief for the interest arising on bank borrowings to buy licensing rights to feature films.
HMRC will contact the members of all related LLPs. Under the settlement opportunity, which will be available for six months, members would be required to give up their interest relief claims and pay any tax due together with late payment interest. However, HMRC will not pursue members for tax on income treated as paying back borrowings, including for periods after individuals had exited the LLPs.
More support on tax
ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.Sign up for TAXwireJoin the Tax Faculty
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.