"I am conscious of the burden of business rates on"bricks and mortar" retailers and propose to ease that burden vis a vis online retailers by crediting all business rates against VAT payments and to recoup this loss of revenue by increasing the rate of VAT by 1.5% to 21.5%. The net effect will be an increase of money received by the Treasury of approximately £2 billion which will go a small way to making good the deficit caused by the impact of Covid-19 on Government finances.
It will represent an injection of about£30bn directly to the high street.
1} What about unfunded employers' schemes - such as the Civil Service?
2] Valuation-no need for HMRC to have experts on chattel valuation[the CTO does not have the numbers of necessary experts}. Just build in a modern day version of Morton's Fork. Give HMRC the option of acquiring any asset for say 115% of the declared value.
3]Non UK property . Wealth tax is arguably not covered by Double Tax Treaties but how will say the US feel about a New York home [ owned by a US executive resident in the UK ] being subject to a UK wealth tax?
4] If enacted this would be a bonanza for UK Accountants
Tax [and that includes VAT] is imposed by law. If the law, as supported by the Tribunal, allows someone who is neither an accountant/bookkeeper nor a management consultant to claim that he or she is entitled to register under the FRS as 'other', that is the end of the matter. There is no separate provision of cost analysis. If HMRC want to change this, they need to change the categories set out in SI1995/2518 para. 55K(4). To do this a new Statutory Instrument will be required, and the likelihood of this in the near future is somewhat remote in the post Brexit world
Where the company concerned is not a trading company[ ie where BPR cannot apply], there is a risk of IHT applying on the grounds that there is an alteration to the rights applying to one or more class of shares where a decision is taken to pay dividends differentially. A sting in the tail is that this cannot be a PET[see s.98(3)].
I have also seen it suggested that the structure itself is a "settlement" for IHT purposes by virtue of IHTA s43
If domicile is to be ignored for tax-implied but not stated in EM's populist proposals- how will IHT be applied to immigrants and emigrants. When will a Brit emigrating escape the UK IHT net?
Red Leader, the Swiss Forfait system [being scrapped in some Cantons] allows a fixed Swiss Federal and Cantonal tax bill for foreigners moving to Switzerland, and has much in common with the taxation of non-doms in the UK, but without the remittance basis.
For example, it excludes from exemption Swiss source income. If the individual enjoys treaty protected income , that too can be taxed in Switzerland if it exceeds the figure on which the Forfait is based.
Without some method of taxpayer 'sign off', if data only income and gains are collected directly how does the taxpayer claim relief for losses, be they CGT or trading losses. And how about the allocation EIS CGT relief, , allocation of Gift Aid to previous years etc. etc.?
I reiterate that the system looks like an extension of PAYE, not a full system to deal with the myriad circumstances with which we all have to deal
My answers
How does holding a second[EU} nationality impact on these changes for a UK resident national ?
"I am conscious of the burden of business rates on"bricks and mortar" retailers and propose to ease that burden vis a vis online retailers by crediting all business rates against VAT payments and to recoup this loss of revenue by increasing the rate of VAT by 1.5% to 21.5%. The net effect will be an increase of money received by the Treasury of approximately £2 billion which will go a small way to making good the deficit caused by the impact of Covid-19 on Government finances.
It will represent an injection of about£30bn directly to the high street.
Just a few random thoughts.
1} What about unfunded employers' schemes - such as the Civil Service?
2] Valuation-no need for HMRC to have experts on chattel valuation[the CTO does not have the numbers of necessary experts}. Just build in a modern day version of Morton's Fork. Give HMRC the option of acquiring any asset for say 115% of the declared value.
3]Non UK property . Wealth tax is arguably not covered by Double Tax Treaties but how will say the US feel about a New York home [ owned by a US executive resident in the UK ] being subject to a UK wealth tax?
4] If enacted this would be a bonanza for UK Accountants
Tax [and that includes VAT] is imposed by law. If the law, as supported by the Tribunal, allows someone who is neither an accountant/bookkeeper nor a management consultant to claim that he or she is entitled to register under the FRS as 'other', that is the end of the matter. There is no separate provision of cost analysis. If HMRC want to change this, they need to change the categories set out in SI1995/2518 para. 55K(4). To do this a new Statutory Instrument will be required, and the likelihood of this in the near future is somewhat remote in the post Brexit world
Secrecy
Hitler would have been thrilled if he could have accessed information in the 1930's from secretive Swiss banks.
It is not only individuals who are evil or corrupt, but governments can be as well.- particularly in relation to oppressed minorities.
Be careful of what you wish for.
Negligence in the Brave New World aka1984
What will be the legal consequence of incorrect entries in quarterly returns.?
When do the words which bind the taxpayer bite? Just pressing a key? On whose software?
Will income tax continue to be an annual tax?
How will accruals be factored into quarterly returns?
We can all add to the practicalities which HMRC seem to have overlooked.
It's the same the whole world over !
See :http://money.cnn.com/2015/02/03/pf/taxes/irs-budget-cuts/
Watch IHTA s98 as well
Where the company concerned is not a trading company[ ie where BPR cannot apply], there is a risk of IHT applying on the grounds that there is an alteration to the rights applying to one or more class of shares where a decision is taken to pay dividends differentially. A sting in the tail is that this cannot be a PET[see s.98(3)].
I have also seen it suggested that the structure itself is a "settlement" for IHT purposes by virtue of IHTA s43
What about IHT ?
If domicile is to be ignored for tax-implied but not stated in EM's populist proposals- how will IHT be applied to immigrants and emigrants. When will a Brit emigrating escape the UK IHT net?
Red Leader, the Swiss Forfait system [being scrapped in some Cantons] allows a fixed Swiss Federal and Cantonal tax bill for foreigners moving to Switzerland, and has much in common with the taxation of non-doms in the UK, but without the remittance basis.
For example, it excludes from exemption Swiss source income. If the individual enjoys treaty protected income , that too can be taxed in Switzerland if it exceeds the figure on which the Forfait is based.
Losses various
Without some method of taxpayer 'sign off', if data only income and gains are collected directly how does the taxpayer claim relief for losses, be they CGT or trading losses. And how about the allocation EIS CGT relief, , allocation of Gift Aid to previous years etc. etc.?
I reiterate that the system looks like an extension of PAYE, not a full system to deal with the myriad circumstances with which we all have to deal