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Tax news in brief


Published: 16 Apr 2024

Highlights from the broader tax news for the week ending 17 April 2024, including: how Labour intends to close the tax gap; a change to the form for reporting a residential property gain; and new HMRC guidance for employers on giving foreign tax relief.

Labour’s plan to close the tax gap

The Labour Party has published its plan to close the tax gap. In the event that it becomes the next government, Labour intends to: boost HMRC’s compliance activities to tackle non-compliance; invest in technology transformation to improve the taxpayer’s experience and reduce the tax gap; and make legal changes to restore a genuine deterrent to tax evasion. It has been reported in the press that Labour has appointed an expert panel to advise it on how to improve compliance and modernise HMRC.

CGT on UK residential property gains

A UK resident taxpayer with capital gains tax (CGT) to pay on the disposal of UK residential property must report the disposal and pay the tax within 60 days of the completion date. A similar requirement applies to non-UK residents. It is possible to report the disposal using a paper form in some circumstances. The format of the form has recently changed from a PDF to an online form. Once completed, the form should be printed and posted to HMRC, as before. For further information on this topic, see TAXguide 15/20.

Taxpayers who received an email in June from HMRC about CGT on the sale of residential property may receive a phone call from HMRC. The purpose of the phone call is to gather feedback on the email.

New guidance for employers giving foreign tax credit relief

HMRC has published guidance for UK employers on giving employees foreign tax credit relief (FTCR). Where an Appendix 5 arrangement is in place, the employer may offset foreign tax deducted from the employee’s pay against tax due under pay as you earn (PAYE). The amount that may be offset is limited to the employee’s UK income tax liability. HMRC’s guidance covers how to: check if an employee can claim FTCR; apply to operate FTCR; and report FTCR.

Foreign businesses doing work covered by the CIS

Businesses based outside the UK can now use HMRC’s form CIS305 to register as a subcontractor and apply for gross payment status under the construction industry scheme (CIS).

Tell HMRC about a lump sum death benefit charge

HMRC has published guidance for legal representatives on the information they need to tell HMRC to calculate the lump sum death benefit charge. The legal representative is responsible for checking whether a chargeable amount arose, and for reporting any chargeable excess over the lump sum death benefit allowance to HMRC.

Manage import duties and VAT accounts

Businesses involved with importing goods into Great Britain (England, Scotland and Wales) and Northern Ireland can use HMRC’s new online service to get their import VAT statements and certificates, manage their payment accounts and manage or view authorities.

Using an agent to claim VAT refunds

HMRC has added a section on using an agent to the following guidance pages for taxpayers:

The updated guidance also now includes a link to a schedule to record details of VAT invoices.

Testing the NCTS portal

The new computerised transit system (NCTS) phase 5 web portal will be available from July 2024. Ahead of that date, HMRC has provided an online service which can be used to test the new portal. Any declarations or notifications completed in the service will be for test purposes only and will not be sent to the customs office.

This week’s tax news from Europe

Each week, CFE Tax Advisers Europe publishes a summary of five key news items for the week. This week’s issue includes an update on the European Union (EU) and the United States’ work on artificial intelligence and the EU’s investigation against tech companies for non-compliance with the EU’s Digital Markets Act.
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