The CIOT is calling on the government to confirm whether it plans to delay or extend a number of major tax changes set to come into play in Spring 2021.
Due to the ongoing economic impact of the pandemic, the government is being urged to provide clarity by the end of next month in order to help businesses and people plan for 2021 with some confidence.
Significant tax changes for business and individuals due to be implemented in Spring 2021 include:
- VAT reverse charge on construction services (with effect from 1st March 2021)
- Changes to the Construction Industry Scheme following the consultation on tackling abuse (with effect from 6th April 2021)
- Off-payroll working rules – extension to the private sector (from 6th April 2021)
- Introduction of the additional two per cent rate of SDLT for non-UK resident buyers of residential property in England and Northern Ireland (from 1st April 2021).
- End of temporary increase in the threshold at which SDLT is payable on purchases of residential property in England and Northern Ireland (the SDLT ‘holiday’ last day being 31st March 2021).
John Cullinane, Director of Public Policy at CIOT (the Chartered Institute of Taxation), said, “We urge that any decision to extend or delay planned tax changes next Spring is clearly announced by the end of next month in order that business and individuals have adequate time to prepare.
“We hope the government will confirm its plans in good time, well ahead of the expected March Budget, to create a more stable, predictable environment for businesses and people. If we give businesses more certainty now that will be good for our embattled economy, good for business investment, good for much-needed growth and good for government as well.”
“Businesses undertaking extensive preparations for these tax changes and their impacts, such as on cash flow, must know as early as possible, and no later than January 2021, if the Government intends to delay, or extend in the case of the SDLT ‘holiday’, any of these measures as a consequence of the ongoing Covid-19 pandemic. Early notice of any postponement is essential for industry and for individuals to provide certainty, minimise costs and allow for effective deployment of resources.”
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