Notification of uncertain tax treatment by large businesses
As earlier announced, the Finance Bill will legislate for a new requirement for large businesses to notify HMRC when they take a tax position in tax returns that is uncertain.
The legislation will be effective from 1 April 2022, applying to corporation tax, VAT and income tax returns (via self-assessment and including amounts collected via PAYE) that are due to be filed on or after that date.
VAT on fund management fees
The government has announced that it will consult on the VAT treatment of fund management fees. We will report on this consultation once it is published. The government is also conducting a wider ranging review of taxation of investment funds and we will also report on any relevant publications in due course.
Online sales tax
The government has confirmed that it will consult shortly on the introduction of an online sales tax.
Various duties
A substantial section of the Chancellor’s speech covered various reductions to fuel duty, air passenger duty, and alcohol duties. This may be received well in some corners of the press – although may spark accusations of misalignment with the mission of the upcoming COP26 summit in others.
Northern Ireland second-hand car sales
The NI Protocol can impact the VAT margin scheme for sales in NI of cars brought from Great Britain. An interim solution for cars registered before 1 January 2021 has been proposed, alongside a planned export VAT credit scheme for cars registered after 1 January 2021 which are exported to NI or the EU.
Imports of dental prosthesis
An exemption from import VAT will be introduced and made retrospective to 1 January 2021 to correct an unintended anomaly. Some taxpayers will be able to obtain import VAT refunds as a result.
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