OTS update on simplifying tax system

The Office of Tax Simplification (OTS) was established in July 2010, to provide advice to the Chancellor on simplifying the UK tax system. The OTS has recently published a recording of an online video update setting out its recent publications on three separate issues.

The insights into tax changes that have been considered by the OTS are as follows:

1. Capital Gains Tax first and second reports. The first report looks at the policy design and principles underpinning the tax whilst the second report explores key technical and administrative issues. This included recommendations to align the CGT rates with Income Tax rates, changes to Business Asset Disposal Relief, improved CGT guidance and a review of main residence relief.
2. Making better use of third-party data. The report sets out proposals for making better use of data held by third parties, such as reporting interest on savings and investments from banks directly to HMRC.
3. Exploring a change to the UK tax year end date. The OTS has explored changing the 5 April year end date for individuals. The OTS examined what a change would entail, and what benefits it would bring (looking at 31 March and 31 December year end dates). If the government wants to take this further, then additional scoping work and early planning for longer term implementation would be required.

If you are looking to simplify your tax situation, why not get in touch with us today and see what we can do to help you.