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HM Treasury update

29 July 2024

Proposing MP
James Murray Lab Co-op
Ealing North
Type
Written Ministerial Statement
Department
Treasury
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TAGS
Defence Economy Employment Taxation

At a Glance

Issue Summary

The government is addressing tax fairness and revenue generation by closing loopholes, tackling tax avoidance, and publishing draft legislation for several measures.

Action Requested

The government is setting out its next steps on priority tax commitments, publishing technical notes and draft legislation for VAT changes on private schools, abolishing the non-UK domiciled individuals' tax regime, addressing carried interest loophole, reforming energy profits levy, investing in HMRC's compliance work, and implementing OECD Pillar 2 measures. A consultation period is open from 29 July to 15 September 2024.

Key Facts

  • The government will introduce 20 per cent VAT on education and boarding services provided by private schools from 1 January 2025.
  • Private schools in England will lose eligibility for charitable rates relief under business rates from April 2025, subject to Parliamentary passage.
  • The concept of domicile status is being removed from the tax system, ending use of offshore trusts and scrapping the foreign income discount.
  • The Energy Profits Levy (EPL) rate will increase to 38 per cent from November 1, 2024, extended until March 2030.
  • HMRC is hiring around 5,000 additional staff to recover more tax revenues and invest in technology infrastructure.
  • Draft legislation abolishing the Furnished Holiday Lettings tax regime will apply from April 2025 with transitional arrangements specified.
  • OECD Pillar 2 draft legislation applies from March 14, 2024, preventing multinational enterprises from accessing temporary simplifications.
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