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Recent press reports have speculated that the Chancellor, Rishi Sunak, is set to increase the main rate of UK corporation tax rate (currently 19%), with some reports predicting a sharp rise to 25%. 

Although making predictions is fraught with danger at the best of times - let alone during a global pandemic – here are three property-related tax announcements we would not be surprised to hear on 3 March.   

Whatever the Chancellor announces in his forthcoming Budget, employee share plans will continue to play an important role as companies move forward from the Covid-19 pandemic. The tax-advantages that share-based awards can enjoy are a key feature, however, equally important is the impact that share-ownership can have on boosting employee morale, motivation and aligning their interests with other investors.

With the number of articles speculating on a potential increase in corporation tax or CGT rates, or the implementation of a wealth tax, it is easy to overlook possible changes to the tax compliance and enforcement landscape. However, given the number of new measures announced in the past year as part of the fiscal stimulus package to support the economy, and a tax gap of 4.7% of tax liabilities, it is also likely that the government will continue the development of its proposals to tackle tax evasion, tax avoidance and tax non-compliance.

In the face of mounting pressure, the government, on 10 February, announced a 5 point plan for investment in building safety, with a further £3.5 billion earmarked for the removal of unsafe cladding.

The story behind the headline...

Since the end of the transition period on 31 December 2020, there have been numerous reports of businesses struggling to deliver goods and even halting deliveries to customers in Northern Ireland. Why is Northern Ireland in this difficult position despite remaining a part of the UK following Brexit? Laura Hodgson, Knowledge Counsel, discusses the newly in force Northern Ireland Protocol, agreed as part of the Withdrawal Agreement in 2019, and the VAT and custom duty charges on goods entering Northern Ireland from other parts of the UK.

The story behind the headline...

Throughout January, papers and media websites were full of stories about people being asked to pay large and unexpected tax and custom duties charges on the arrival of goods from the EU. So, what is this so-called Brexit tax and why is it being charged when the UK and EU have agreed a zero tariff Brexit deal?

Raising tax and the Triple Lock

With recent press reports that the Chancellor, Rishi Sunak, is going to stick with the Conservative manifesto 'triple lock' pledge you may be wondering how he might raise tax at next month's Budget without actually raising tax rates.

Travel restrictions and other measures imposed or recommended by governments in response to the COVID-19 pandemic (COVID-related restrictions) have now been in place in the UK and elsewhere for much longer than was perhaps envisaged in early 2020.

In November 2020 the Office of Tax Simplification (OTS) has published a report reviewing capital gains tax which included the following recommendations:

Pre-Budget rumours of the death of Entrepreneurs' Relief proved to be premature. The relief has survived, but the Chancellor has attempted to balance concerns about the cost of the relief and its effectiveness as an incentive to invest against its value to owner managers of smaller businesses by cutting the lifetime limit for relief from £10 million to £1 million with effect from Budget Day (11 March 2020).

The climate featured heavily in the Chancellor's speech today (11 March 2020) forming part of the government's strategy to create high skill, high wage, low carbon jobs. This all falls under HM Treasury's Net Zero Review which aims to make the UK a net zero emissions economy by 2050.

In the Spring Budget the government announced that it would publish a consultation on the UK's "hybrids" anti-avoidance regime. The consultation was published on 19 March 2020 and looks at three particular areas which have caused real difficulties for investment funds.

The government has announced that it will undertake a wide-ranging review of the UK's funds regime, with a view to examining the case for policy changes in the tax and regulatory framework.