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Tax policy update
12 November 2020
Type
Written Ministerial Statement
Department
Treasury
At a Glance
Issue Summary
The statement discusses various tax policy updates including consultations on tax advice standards, tackling promoters of tax avoidance, and Making Tax Digital for Corporation Tax. It also includes further policy announcements such as extending the Annual Investment Allowance and uprating tobacco duties.
Action Requested
The Government is publishing responses to consultations and draft legislation related to Spring Budget measures extended due to COVID-19. They are consulting on professional indemnity insurance for tax advisers, measures to tackle promoters of tax avoidance, and Making Tax Digital for Corporation Tax. The statement also announces policy changes including extending the Annual Investment Allowance until December 2021, uprating tobacco duties, delaying certain tax measures, and reviewing the exemption for sugary milk from the Soft Drinks Industry Levy.
Key Facts
- The Government is publishing responses to consultations extended due to COVID-19.
- Draft legislation will be introduced accompanying a Tax Information and Impact Note (TIIN) and Explanatory Notes.
- A consultation on professional indemnity insurance for tax advisers is being launched as the first step towards raising standards in the market for tax advice.
- The Government announced an extension to the temporary £1 million cap of Annual Investment Allowance until 31 December 2021.
- Tobacco duties will increase by RPI + 2% on all tobacco products and HRT will increase by RPI + 6%, with MET increasing by RPI + 4%. Effective from November 16, 2021.
- The implementation of the requirement for large businesses to notify HMRC of uncertain tax treatments is delayed until April 2022.
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