Today we have had both the expected tax news from the new Government, and also some more unexpected announcements. What is clear is that the plan is wide ranging and not short of controversy.
We have produced more detail on Business taxes here and Personal tax here to help cover some of the main ramifications. The general theme is to cut tax to encourage investment and ultimately economic growth and there is also some good news for Gloucestershire.
Further to that I also summarise some of the other matters raised:
Instead of having a separate arms-length body, the Office of Tax Simplification (OTS) to oversee simplification of the tax system, the government now intends to embed tax simplification into the institutions of government. Accordingly the Office of Tax Simplification will be abolished and a mandate set to HM Treasury and HMRC to focus on simplifying the tax code.
This is a surprise move. Some will suggest that very little simplification suggested by the OTS has actually been enacted. However having been involved in projects undertaken by the OTS I can see the benefit in the recommendations made, and it does represent a good independent body to research taxation across the world and understand from tax professionals the impact of tax and suggested changes. It has been disappointing that such valid suggestions are infrequently made policy. My worry is the lack of resource available to HM Treasury and HMRC to fulfil this role.
Industrial Action – Minimum Service Levels and Pay offers
The government will also introduce legislation that will ensure Minimum Service Levels can be put in place for transport services so that industrial action doesn’t make it impossible to get to and from work, and to make it easier to settle industrial disputes by ensuring meaningful employer pay offers are put to employees.
Some good news for Gloucestershire – the A417 Air Balloon “missing link” is number two on a long list of high priority road projects aiming to start construction by the end of 2023.
The government intends after a consultation to introduce a modern, digital, VAT-free shopping scheme with the aim of providing a boost to the high street and creating jobs in the retail and tourism sectors. This new VAT-free shopping scheme for non-UK visitors to Great Britain will enable them to obtain a VAT refund on goods bought in the high street, airports and other departure points and exported from the UK in their personal baggage. I am not convinced this will be a simplification, although I can understand the wider economic competitiveness of UK goods acquired by non-UK visitors.
If you have any questions for our Tax experts as a result of this mini-Budget, please contact us on 01242 776000 or email@example.com.