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TODAY'S OTHER NEWS

Limited property tax proposals unveiled by government

Some 30 tax documents have been released by HM Treasury this afternoon - a mix of responses to past consultations, proposals going out to new consultations, and updates on ongoing reviews.

So far it appears that two major concerns of the property industry - Capital Gains Tax reform and Stamp Duty Land Tax reform - are not amongst the proposals, but there are other property related announcements.

One concerns “strengthening the self-catering accommodation criteria for business rates”.

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This afternoon’s announcement says: “The government will legislate to change the criteria determining whether a holiday let is valued for business rates to account for actual days the property was rented, following a previous consultation. This will ensure that owners of properties cannot reduce their tax liability by declaring that a property is available for let while making little or no actual effort to do so.”

Another property-related announcement concerns a residential property developer tax.

The government says it will “publish a consultation on a new tax on the largest residential property developers following the … announcement by the Secretary of State for Housing, Communities and Local Government. The tax will be introduced in 2022 to help pay for the costs of cladding remediation. The consultation will be published in the coming months.”

There has also been confirmation that Inheritance Tax regulations will be simplified later this year so that from January 1 2022 over 90 per cent of non-taxpaying estates each year will no longer have to complete inheritance tax forms for deaths when probate or confirmation is required. 

Most of this afternoon’s announcements are not guaranteed to lead to new taxes, but combined they are considered to be an insight into the Boris Johnson government’s approach to long-term tax reform.

In a statement describing the 30 or so consultations, the government says that together they “set out how HMRC will deliver the flexible, resilient and responsive tax system the UK will need in the years ahead. The strategy focuses on delivering a fully digital tax system that works closer to real time, is fair and builds trust – allowing taxpayers to pay the right tax with ease as they live their lives and go about their business.”

One other measure which will be of interest to agents - the government has announced a consultation and call for evidence on the future of business rates - you can see that in detail on the Treasury website, here.

And you can see here, a summary of all the measures announced this afternoon.

Please keep checking back to this page for future updates as the documents are examined in detail.

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