Spring Budget 2023

VAT and duties changes in the Spring Budget: Find out more about changes to rates, DIY housebuilder claims and the VAT healthcare exemption.

Update to meaning of R&D for tax purposes: ICAEW’s Tax Faculty highlights changes to the guidelines and legislation on the meaning of research and development for tax purposes.

Significant changes ahead for business rates: ICAEW’s Tax Faculty explains the technical changes to the business rates system announced alongside the Spring Budget.

What reliefs should be available to environmental land management activities?: The government is implementing frameworks to support private investment in nature’s recovery. Ecosystem service markets can assist in achieving the UK’s wider net-zero strategy, but there is uncertainty about how the current tax rules apply.

Need to know

Deadline to top up national insurance contributions extended: Taxpayers will have until 31 July 2023 to make voluntary national insurance (NI) contributions going back to April 2006. The government has announced that contributions made in this window will be at the 2022/23 voluntary NI rates.

Customs Declaration Service: have you been charged twice?: A recent major incident with the service has caused some declarants to make import declarations twice, meaning taxpayers may have been charged twice for the same movement.

Opportunity to report UK property disposals on SA return only: Vendors disposing of UK residential property late in the tax year may be able to report via their self assessment tax return only, paying by 31 January, if they submit the return quickly enough.

Resolving HMRC employer liabilities and payments account errors: ICAEW’s Tax Faculty requests real-life examples to help convince HMRC of the problem.

ICAEW responds to proposed merger of R&D schemes: The government has suggested merging the two research and development (R&D) tax relief schemes to reduce complexity and mitigate fraud, while seeking to improve efficiencies in generating investment.

The Windsor Framework: VAT and duty implications: The Windsor Framework, amending the Northern Ireland Protocol, includes changes to rules for movements of goods from Great Britain into Northern Ireland. ICAEW’s Tax Faculty sets out the VAT and duty implications.

Member helpsheets and guidance

VAT and value shifting: HMRC publishes guidelines for compliance: HMRC’s guidelines on apportionment of consideration are relevant for businesses that sell any goods or services with different VAT liabilities for a single price as part of a bundle.

Paper return for UK property CGT reporting available for download: The capital gains tax on UK property (CGT PPD) return has been published on HMRC’s website. Those submitting paper returns can now download the form instead of having to request it from HMRC by phone.

Employees working abroad: HMRC introduces new intelligent “gForm”: HMRC releases new application form for a certificate confirming that an employee pays UK national insurance contributions (NIC) when working abroad.

Basis period reform: How to deal with estimated figures: The fiscal year basis of taxation, applying from 2024/25, could mean unincorporated businesses that are unable to have an accounting date that matches the tax year will have to use estimated figures in their tax returns. How will this work and what are the penalty implications?

Consultations

Revenue Scotland consults on changes to additional dwelling supplement: The 6% additional dwelling supplement (ADS) is charged on buying an additional residential property (dwelling) in Scotland. Revenue Scotland is consulting on changes to the rules, which will affect timelines, inherited property, small shares, divorce or separation, joint buyers, economic units, and local authorities.

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