The Treasury is holding a ‘tax day’ three weeks after the Budget, providing key insight into the government’s long-term tax strategy.
Background
The Treasury said it will publish several consultations relating to tax policy on March 23 – a day being labelled as ‘tax day’.
Jesse Norman, financial secretary to the Treasury, said: “The goal of making these announcements separately to the Budget, but still all on a single day, is to give a range of important but less high profile measures greater visibility among, and opportunity for scrutiny by, parliamentary colleagues, tax professionals and other stakeholders.”
What’s likely to be included?
A number of the consultations will relate to the government’s 10-year tax administration strategy. Here’s three topic areas likely to feature:
- Revenue generating measures are likely to be a key focus, with a plan needed to begin to claw back the unparalleled spending over the past year that was necessary to combat COVID-19.
- Policies relating to climate change are likely to feature, including consultations on how to tax carbon while generating incentives for green energy innovation.
- The Chancellor has previously vowed to tackle the dominance of tech giants, such as Google and Facebook, to ensure they pay a fair rate of tax and prevent them having a monopoly in their respective markets and squashing their rivals in the process. The online explosion over the past year, triggered by the pandemic, and to the benefit to companies such as Amazon, will have only intensified calls for tax reform.
If you would like to read Magma’s detailed analysis of last week’s Budget you can do so here: https://www.magma.co.uk/budget-2021-summary/. If you are looking for any advice, you can contact our team on 01788 539000 or email [email protected].