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Not the Autumn Budget: Government releases a raft of tax updates

Over a dozen tax announcements were quietly slipped out in a written parliamentary statement on 12 November, Rebecca Cave summarises what you need to know. 

13th Nov 2020
Tax Writer Taxwriter Ltd
Columnist
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Houses of parliament
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Chancellor Sunak postponed his Budget Statement to Spring 2021, but the tax policy machine has not stopped. It fell to Jessie Norman, financial secretary to the Treasury, to announce the government’s reaction to concluded tax consultations and launch some new ones, including the long-awaited consultation on MTD for corporation tax. There is also an important change for capital allowances.   

AIA cap extended

The £1m annual investment allowance (AIA) cap was due to revert to £200,000 on 1 January 2021. The ATT called for an extension of the higher AIA cap in September and again in October, and it appears the Treasury listened. The AIA cap will be held at £1m until 1 January 2022.   

MTD for corporation tax

We’ve waited over four years for this con doc on MTD for corporation tax, and I’ll have more to say about it in a future article as the consultation is open until 5 March 2021. In the meantime, all you need to know is:

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Replies (3)

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By Mr J Andrews
16th Nov 2020 09:50

All good for me. But raising standards for tax 'advice' or any tax services should be a Govt. announcement and directive to it's own HMRC department.
Perhaps Chancellor Sunak should look into the administrative shortcomings here ?

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Replying to Mr J Andrews:
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By Neil Daws
16th Nov 2020 12:11

Has Parliament given HMRC the ability to make its own Rules and Regulations?

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By dmain
20th Nov 2020 15:44

Interesting (though perhaps not surprising) that the AIA has been extended to the end of 2021. This applies not only to new equipment but also used equipment, we are waiting to see if there will be a spike in used equipment purchasing at the end of 2021 (similar to the Section 179 regulations in the USA that tend to cause an increase in activity near the end of each year in equipment auctions).

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