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Tax Policy

Volume 675: debated on Tuesday 28 April 2020

At Budget 2020, the Government published 11 tax policy consultations and calls for evidence. The Government are grateful for the responses to these that have already been received from stakeholders.

The Government recognise that many stakeholders are facing significant disruption due to covid-19. The Government want to give all stakeholders time to submit their views.

Therefore, the deadlines for responses to the following tax policy documents will be extended for three months, to allow stakeholders to engage fully with these documents and to contribute to the tax policy making process. However, the Government encourage early responses from stakeholders where possible, to support their continuing consideration of these issues:

Plastic packaging tax: policy design—now closing on 20 August 2020

Preventing abuse of the R and D tax relief for SMEs: second consultation—now closing on 28 August 2020

Tackling construction industry scheme abuse—now closing on 28 August 2020

Notification of uncertain tax treatment by large businesses—now closing on 27 August 2020

Vehicle excise duty: call for evidence—now closing on 3 September 2020

Call for evidence: raising standards in the tax market—now closing on 28 August 2020

Consultation on the taxation impacts arising from the withdrawal of LIBOR—now closing on 28 August 2020

Hybrid and other mismatches—now closing on 29 August 2020

Tax treatment of asset holding companies in alternative fund structures—now closing on 19 August 2020

Consultation: HMRC charter—now closing on 15 August 2020

The EU exit transition period will end on 31 December 2020. The consultation on duty-free and tax-free goods carried by passengers and the informal consultation on the VAT treatment of overseas goods will therefore continue to the existing timetable. This will provide businesses with clarity as early as possible on the policies that will apply from 1 January 2021. It will also give businesses enough time to prepare and ensure the right legislation is in place for 1 January 2021. The Government appreciate that some stakeholders may not be able to respond by the deadline, and where late submissions are received, they will take them into account as far as possible.

On 16 April the Government published a consultation on the climate change agreement scheme extension and reforms for any future scheme. The timetable for this will continue as planned, to ensure the extension of the scheme will be in place by September as announced at Budget 2020, supporting energy intensive businesses to operate in a more environmentally sustainable way.

At Budget 2020, the Government also announced they would publish a number of other tax policy documents. In the light of covid-19, the Government will consider the publication of these and other expected documents on a case-by-case basis, taking into account the impact of covid-19 on stakeholders. The Government will continue to publish the following documents over the spring and summer:

The call for evidence for the fundamental review of business rates

The consultation on further entitlement to use red diesel

The consultation on the design of a carbon emissions tax

The consultation on national insurance contributions holiday for employers of veterans

A call for evidence as part of the post-EU exit alcohol review

A summary of responses to the call for evidence on the operation of insurance premium tax

A summary of responses and government next steps to the aggregates levy review

HMRC’s civil information powers

A summary of responses to the non-UK resident SDLT surcharge consultation

A summary of responses to the call for evidence on VAT electronic sales suppression

A review of how VAT works in the public sector

The Government will delay the publication of the following documents until the autumn:

A discussion document on the wider application of tax conditionality

The response to the call for evidence on simplification of the VAT partial exemption and capital goods schemes

The consultation on whether qualifying R and D tax credit costs should include investments in data and cloud computing

The consultation on stronger penalties for tobacco tax evasion

The Government will provide more detail on the publication of the following documents in due course:

The consultation on aviation tax reform

The call for evidence on disguised remuneration schemes

The review of the UK funds regime

The consultation on the economic crime levy

The conclusion of the small brewers’ relief review

A summary of responses to the call for evidence on social investment tax relief

The Government’s position on publication of tax policy documents will be kept updated through the public consultations tracker.