Budget 2020. Property-related highlights
Every month, Trace Solutions proactively analyses and evaluates all property-related legislative changes, to assess the impact they're likely to have on our clients and our software. Here are our comments on yesterday's budget.
2.191 to 2.196 Business Rates.
Various changes were announced to Business Rates. Some were short term (in response to the COVID-19 outbreak), but perhaps more importantly there was an announcement of a full review of Business Rates which will commence in the Spring.
Whilst this is unlikely to impact our software directly, Business Rates are a significant property cost for many of our clients. So we urge you to monitor the HMRC website for notification of the “call for evidence”, which will be your opportunity to express your opinions.
2.212 Non-resident Stamp Duty Land Tax (SDLT) surcharge
Announcement of 2% surcharge on Stamp Duty for non-UK residents who are purchasing residential property
2.241 VAT Partial Exemption
For some months we have been monitoring the outcome of HMRC's call for evidence on the simplification of rules on partial exemption and the capital goods scheme. The budget reports ongoing engagement with stakeholders.
Avoidance, evasion and non-compliance
2.249 Tackling Construction Industry Scheme (CIS) abuse
We will monitor for further updates from the government and identify if there is likely to be any impact on our software
2.250 Domestic reverse charge for building and construction services
This is confirmation of the previous notification that the change to the charging of VAT on the supply chain of construction services covered by the CIS scheme will take effect from 1st October 2020. We have previously issued notifications to our clients regarding our assessment of the impact of these changes. Please refer to our news article from 14th November 2018.
2.259 Future of Making Tax Digital (MTD)
The Government will be issuing a document to provide further detail on the timing of the continuing roll out of MTD. The last notifications suggested that MTD for Income Tax will be next, in April 2021.
2.264 Insurance Premium Tax
A call for evidence on the operation of IPT will be issued soon. Consultation process to follow.
HM Treasury publish the full Budget Report online. You can read it by clicking on the image below: