Autumn Statement 2024 - Wish Lists

Various professional bodies have published their ‘wish lists’ for the Chancellor’s Autumn Statement and we have summarised these below, plus your BUFDG tax team have also added in what they are wishing for on behalf of the sector.

CIOT

The Chartered Institute of Taxation (CIOT) concentrates on the tax treatment of cryptoassets, currently being subject to the same rules as tangible assets (e.g. shares) despite being a very different beast. The CIOT suggests amending legislation to include the tax treatment of cryptoassets as a ‘third form’ of property, allowing for uniform treatment.

IFS

The Institute for Fiscal Studies (IFS) Green Budget  sets out the current economic outlook (not great) and believes the Chancellor doesn’t have much manoeuvring capabilities without creating an interest rate hike. In terms of tax changes, it recommends fundamental changes to the Inheritance Tax system (UK’s most disliked tax), reform of the Apprenticeship Levy to reinvigorate declining apprenticeship numbers, and perhaps broadening exemptions for self-funded training.

ICAEW

The ICAEW labelled their response as the ‘resilience and renewal’ representation, with 8 priority policy recommendations:

1. Increase productivity by boosting investment and addressing skill shortages
2. Incentives for net zero aligned R&D
3. Publish an overarching tax strategy
4. Address poor HMRC service standards
5. Address significant problems in local government
6. Intervene on concerns with business banking services and late payments; and take steps to improve access to finance for SMEs
7. Publish a roadmap for tax simplification
8. Address gaps in digital tax services

LITRG

The Low Incomes Tax Reform Group (LITRG) focus on HMRC’s lack of suitable policy around electronic and digital signatures, which may aid unscrupulous agents, particularly tax refund companies.

BUFDG

For employment taxes, Julia would like:

• an exemption for all students in receipt of stipends (regardless of whether they in are part-time or full time studies)
• broadening existing exemptions for eye tests/lenses, trivial benefits and food provided on the employer premises to include occasions where employees pay and are reimbursed by their employer
• broadening of the benefits that can be included in an Employee Assistance Programme, removal of any caps on number of sessions and inclusion of employee dependents
• Increasing or removing the £500 cap on medical treatment to support employees back into the workforce

For VAT, Customs and CT, Andrea would like:

• reclassification of PVA use so that it can be used by a VAT registered entity in relation to business or non-business entities
• a change to how VAT is self-charged when charitable buildings are used for commercial/non research purposes  - looking at “use” on an annual basis
• future proofing of the medical and veterinary research /training reliefs to include training models and packages
• announcement of an overhaul of import reliefs – including a more joined up approach between HMRC’s import VAT and import duty teams