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Calm before the storm? Financial Updates for July/August 2019

This time last year we reflected on a summer of numerous HMRC consultations and Brexit plans.

Perhaps not surprisingly, it seems nothing much has really changed. The summer heatwave gave way to heavy storms for a good part of the UK, and on the political front, Boris Johnson’s appointment has advanced both the narrative and planning for a potential no-deal exit from the EU.

That uncertainty has meant little new development aside from existing Budget and other legislative changes coming into force over the last few months. The major change affecting businesses was the launch of Making Tax Digital for VAT in April. In the latest review of our Key Guides we pick up on the most recent detail and guidance from HMRC around recording supplier statements and invoices as this major change beds in.

We also look at the long awaited second report from the Office of Tax Simplification (OTS) on reform of inheritance tax (IHT). The statistics alone on the mechanics of IHT highlight one of the major problems with this much debated tax: of the over half a million deaths a year, just under 50% of estates have to file IHT returns, but only 5% of estates end up paying any tax. Some of the key recommendations for change are summarised in our guide ‘You and yours – estate planning’.  

Our guides on working through personal service companies, buying and selling a business and investing tax-efficiently have also had minor amends.

With a new government still taking shape, we are likely to see a step-change in activity. There could be an emergency Budget in the autumn prior to the Brexit date. This may be the calm before the storm, so it’s worth taking the opportunity to focus on the nuts and bolts of your personal and business tax planning.

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If any questions arise for you from any of our Key Guides, please get in touch via 0161 767 1200 or enquiries@dtegroup.com.