Other news in brief

R&D tax relief claims – HMRC’s ‘One to Many letter’ campaign

HMRC have recently written to c.2,000 businesses that have made research and development (R&D) tax relief claims. The intention is to raise taxpayers’ awareness of fraudulent R&D claims. The letter encourages Company Directors to check their claims are complete and correct and provides guidance on what to do if errors are found. Our previous article provides further details, including how to ensure you are best placed to respond to the questions raised by HMRC in these letters and who to reach out to for help if you receive one.

Time limited increases to Stamp Duty Land Tax thresholds now enacted

On 8 February 2023, the Stamp Duty Land Tax (Temporary Relief) Bill 2022-23 received Royal Assent and became the Stamp Duty Land Tax (Temporary Relief) Act 2023. The Act gives formal statutory effect to the increases in the stamp duty land tax (SDLT) thresholds for residential property transactions in England and Northern Ireland effected on or after 23 September 2022, the date of the ‘fiscal event’. These changes were subsequently made temporary in the Autumn Statement in November 2022 so the Act provides the band increases will cease to have effect after 31 March 2025. With effect from 23 September 2022 and until 31 March 2025: The residential nil-rate tax threshold is increased from £125,000 to £250,000; first time buyers’ relief nil-rate threshold is increased from £300,000 to £425,000; and the upper price limit is increased from £500,000 to £625,000.

Land and Buildings Transaction Tax - Additional Dwelling Supplement

The Scottish Government, on 8 February 2023, published its findings and a summary of responses in relation to its recent consultation on the Land and Buildings Transaction Additional Dwelling Supplement along with a further consultation on proposed legislative amendments. The closing date for interested parties to submit comments on the consultation document is 5 April 2023.

Scottish Rate Resolution – Income tax rates for Scottish Taxpayers 2023/24

The Scottish Parliament passed a Scottish Rate Resolution on 9 February 2023. This set the rates of income tax and applicable bands for Scottish taxpayers’ non-savings and non-dividend income (e.g. employment and rental income). The rates and bands which will apply to relevant income of Scottish taxpayers for 2023/24 can be found on the Scottish Government website.

Responses published for the Online Sales Tax consultation

On 9 February 2023, HMRC published the responses received to their consultation on the potential introduction of an Online Sales Tax (OST). This follows the Government’s decision not to proceed with an OST as announced in the Chancellor’s Autumn Statement 2022.

Register now for our live reactions to the upcoming Spring Budget

Registration is now open for our LinkedIn Live event on the afternoon of Wednesday 15 March 2023. Tim Sarson, Partner and Head of Tax Policy at KPMG in the UK, is joined by Yael Selfin, Chief Economist at KPMG in the UK and a number of other tax and economic experts at KPMG UK to share our first impressions of the Chancellor’s Spring Budget. Register via LinkedIn.