New tax exemptions for compensation payments and benefits
Regulations have been made which:
- provide that no liability to income tax arises on pension age disability payments (The Income Tax (Exemption of Social Security Benefits) (No. 2) Regulations 2024, SI 2024/901); and
- provide for exemptions from income tax and capital gains tax, and a relief from inheritance tax, for Infected Blood Compensation Scheme payments (The Infected Blood Compensation Scheme (Tax Exemptions and Relief) Regulations 2024, SI 2024/902).
Guidance on applying for an SDLT refund
HMRC has published guidance on applying for a refund of the higher rates of stamp duty land tax (SDLT) for additional properties. The guidance explains the circumstances in which a claim may be made, and that a claim can be made online or by using form SDLT16.
HMRC one-to-many campaign: duty-free spirit
HMRC is writing to businesses that hold a duty-free spirit approval acquired between February 2020 and December 2021 (possibly to produce hand sanitiser) and asking to them confirm whether they still need it. Responses are required by email within 30 days of the date of issue of the letter. If a response is not received, HMRC may open a compliance check to confirm the usage of the approval.
Genuine contact from HMRC
HMRC has updated its guidance on genuine HMRC contacts to include:
- a letter sent to small businesses who had an enquiry with HMRC closed between 2022 and 2023; and
- an email sent to pension scheme administrators to remind them that they need to migrate their pension schemes to the managing pension schemes service.
Correct addresses for insolvency correspondence
HMRC has urged insolvency practitioners to make sure they send forms and letters to the correct address. HMRC advises that:
- insolvency-related correspondence should be sent to the Enforcement and Insolvency Service addresses shown on VAT Notice 700/56;
- print and post forms such as VAT426 and VAT427 must be sent to the address detailed on the last page of the relevant form; and
- VAT100 forms must be returned to the address printed in the text above boxes one to nine.
Tax Faculty
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