Updates from Tax Administration Day

This past 30th November, the UK government held its semi-annual Tax Day, officially named Tax Administration and Maintenance Day (TAMD). Although the name itself is unattractive, it provides a good opportunity for individual taxpayers to understand the future blueprint of the UK tax authorities and to better plan for the future. Here we will briefly analyse some of the personal tax related issues mentioned in the TAMD.

Firstly, the Inheritance Tax, the tax authorities have announced that there will be no changes, which will be good news for most people. This means that the capital gains tax uplift, lifetime gifts regime and business property relief currently in place will remain unchanged. The original direction of change proposed by the authorities could have seen more taxpayers fall into the Inheritance Tax net. Now at least we can all breathe a sigh of relief.

Next is Capital Gains Tax. Although there is no definitive timetable, the government has indicated that it will push for some improvements, such as extending the filing deadline to 60 days after the sale of a property and consulting on the nil gain/nil loss rule for separators/divorcees. Other than the filing deadline, the other issues are focused on narrower areas but will be of considerable benefit to the individuals affected.

TAMD also mentioned other issues that will be considered by the tax authorities, such as changes to the share pooling rules under capital gains tax and main residence relief, but we will not go into detail as the chances and timelines for their implementation are unpredictable.

There was nothing particularly exciting about personal taxation at the time, but at least you can have a more stable expectation of the current tax policy.

If you are interested in learning more about personal taxation in the UK, please do not hesitate to contact us.