June’s monthly Government borrowing figures. They included £7bn of downwards revisions which brought year to date borrowing below the Office for Budget Responsibility (OBR)’s projections. However, despite the revisions, total debt for June 2023 is above the 100% of GDP threshold.

On Friday, the Office for National Statistics (ONS) published the monthly public sector borrowing data for June 2023. Like the inflation numbers issued on the Wednesday, the borrowing figures were better than had been expected:

• The public sector net deficit ex banks (PSNB ex) in June 2023 is estimated to have been £18.5bn, meaning it was:

• The third highest June borrowing since monthly records began in 1993;
• £0.4bn less than a year ago;
• £0.1bn greater than in June 2021;
• £13.84bn less than in June 2020;
• £2.6bn below the OBR monthly profile projection; and
• £3.5bn below the Reuters economists’ median forecast.
• The latest estimate of total borrowing for the 2022/23 was revised down by £2.1bn to £132.1bn.
• Overall public sector net debt excluding banks (PSND ex) was £2,596.2bn, equivalent to 100.8% of GDP (up 0.9%). Last month’s initial May figure, which just crossed the 100% threshold, was revised down to 99.9% due to a £6.3bn increase in the GDP estimate outpacing a £0.5bn rise in the debt estimate.
  
  In June 2022, debt was 97.3% of GDP and £171.2bn less in cash terms. When the Prime Minister made reducing the debt/GDP ratio one of his five pledges in early January 2023, the then latest figure (for November 2022) was also 97.3%.

• At £12.5bn, the June 2023 interest payments were £3.7bn higher than May’s figure, but £7.5bn less than a year ago. The interest bill was £1.5bn below the OBR forecast, although it still ranked as the third highest payable in any single month on record.
  
  Total interest three months into 2023/24 amounts to £29.8bn, about 1.2% of GDP. Given the UK saw only 0.2% growth in the year to March 2023, that 1.2% serves as a reminder of how difficult it will be to push down the debt/GDP ratio. As the Institute for Fiscal Studies recently pointed out, the interest burden implies that if it is to stand any chance of cutting the debt/GDP ratio, the Government will need to run a large primary budget surplus, i.e. spend significantly less on everything excluding interest payments than its raises in revenue.
  
• Bank of England holdings of gilts (at redemption value) fell by £7.0bn from April to £695.5bn. The gap between the reserves the Bank created to purchase the gilts under QE and their redemption value narrowed by £0.8bn to £107.7bn (counted as Government debt, as the Treasury indemnified the Bank against losses).

The OBR commentary made the following comments:

• Borrowing in the first three months of 2023/24 totalled £54.4bn, £12.2bn above the same period last year but £7.5bn below the OBR’s monthly profile based on its March forecast. This downside surprise is more than explained by higher central Government receipts (£7.7bn above profile) thanks to surpluses across the three major taxes – onshore corporation tax, VAT, and PAYE income tax and national insurance (NICs) – alongside lower borrowing by local authorities.
• Central Government spending at £4.5bn above profile provided a partial offset to the increased tax receipts. Part of this was attributable to the non-consolidated element of the NHS pay settlement.
• HMRC cash receipts were £4.7bn (8.5%) above the OBR profile in June and were up £3.8bn on last June. This strength is explained by:

• Onshore corporation tax cash receipts were £3.1bn (34.9%) above profile and £3.7bn (45.3%) up on last year.

• Cash VAT receipts £1.2bn (15.0%) above profile and £4.2bn (11.4% per cent) higher than the OBR profile for the first three months of the year.

• PAYE income tax and NICs cash receipts were £0.7bn (2.2%) above profile.

Comment

A second piece of relatively good news for the Chancellor will be welcome relief. However, scope for a tax giveaway alongside the Autumn Statement continues to look minimal.

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The DWP’s trial to encourage low-income pensioners to apply for Pension Credit.

Nearly 1.4 million pensioners across Great Britain receive Pension Credit, but many aren’t claiming this extra financial help. So, two thousand people in Great Britain will receive letters inviting them to apply for Pension Credit as part of a new trial launched on 17 July.

The letters and leaflets will be targeted at households in ten local authorities that are already in receipt of Housing Benefit, but not claiming Pension Credit.

Launched by the Department for Work and Pensions (DWP), the “Invitation to Claim” trial targets those likely to be eligible for Pension Credit – individuals above State Pension Age and in receipt of Housing Benefit.

Pension Credit can be worth over £3,500 per year on average for people over State Pension age and on a low income – and it can lead to further support including extra Cost of Living payments later this year.

The ten local areas selected for the trial have been selected to ensure a representative sample of urban, rural, regional and national areas. Letters and “call to action” leaflets will be sent out in two waves, beginning this week, with a follow up letter to be sent out in August. The ten local authorities chosen for the “Invitation to Claim” trial are:

• Eastbourne
• Teignbridge
• Pendle
• Charnwood
• Vale of White Horse
• Redcar and Cleveland
• Craven
• Harrow
• Powys
• West Lothian

Pension Credit is designed to help with daily living costs for people over State Pension age and on a low income, although they do not need to be in receipt of State Pension to receive it.

The benefit tops up a person’s income to a minimum of £201.05 per week for single pensioners and to £306.85 for couples – or more if a person has a disability or caring responsibilities. For more information, please see Pension Credit.

Even a small Pension Credit award can open doors to other benefits – including help with housing costs, council tax, heating bills, as well as up to £600 in extra Cost of Living payments later this year too.

Pension Credit can be claimed by phone and online, ensuring that older people can apply safely and easily, wherever they are. The online Pension Credit calculator is also on hand to help pensioners check if they’re likely to be eligible and get an estimate of what they may receive.

Applications for Pension Credit can be made:

• On the How to Claim page;
• Over the phone by calling 0800 99 1234 (Monday to Friday 8am to 6pm);
• By printing out and filling in a paper application form.

For more information please visit the Pension Credit GOV.UK page. For extra resources for stakeholders and businesses, the department has also produced a Stakeholder Toolkit. Pensioners can check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator.

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HMRC’s qualitative research into the experiences and main considerations when choosing and using compatible software for Making Tax Digital (MTD).

HMRC commissioned Kantar Public to undertake qualitative research with businesses to understand the decision-making process around choosing MTD-compatible software, and the levels of satisfaction with that choice from those currently using software. HMRC says that insight from the research will inform its future guidance and support offer for businesses and support HMRC in ongoing collaboration with software developers and vendors. The research looked at:

• the steps involved in choosing MTD-compatible software;
• the key factors and features considered and prioritised by taxpayers;
• the information gaps that prevent businesses from choosing the software that better suits their needs;
• the main sources of dissatisfaction of customers with MTD-compatible software.

The research comprised 50 in-depth interviews and four focus groups with business taxpayers registered for VAT in the UK, currently affected by MTD rules.

Contextual note: This research was carried out in March and April 2022. At this time, MTD for Income Tax Self Assessment (MTD ITSA) was due to be introduced from April 2024 for self-employed individuals and landlords with a gross income of £10,000 and above.

On 19 December 2022, the Government announced a longer period for self-employed individuals and landlords to prepare for MTD. From April 2026, self-employed individuals and landlords with a gross income of more than £50,000 will be required to keep digital records and submit returns using MTD-compatible software. Those with a gross income of between £30,000 and up to £50,000 will be required to do so from April 2027.

And, following the phased approach, the Government will not extend MTD ITSA to general partnerships in 2025. It remains committed to introducing MTD ITSA to partnerships at a later date.

HMRC provides some information on the software available on GOV.UK. However, the feedback has shown that businesses expect more support from HMRC to help them choose the right product.

Participants faced a common set of challenges and information gaps across the process of selecting and using MTD-compatible software. The key challenges and information gaps highlighted by participants at each stage of the decision-making process included:

• confusion about the meaning and implications of MTD at the awareness stage;
• feeling overwhelmed when trying to filter software options;
• a lack of confidence in software choice;
• frustration, after using software, that they had made an inappropriate software choice for the needs of their business.

There were six main considerations that participants prioritised when selecting MTD-compatible software:

1. cost, including upfront and ongoing costs of software and of time;
2. ease of use; specifically, whether MTD-compatible software was easier or as easy as their current record keeping system;
3. recommendations from agents and peers;
4. features, including compatibility with existing systems and accessibility;
5. security and reliability, including data security, customer support and updates;
6. familiarity, including previous experience with software.

Ideally, participants wanted HMRC to provide some guidance on the types of software that might be best suited to a business of their size and type.

Participants also felt that information about the cost of different options could be improved. Some reported that they had looked at options listed as free-to-use which then turned out not be free at all. This created further confusion and frustration for some businesses that were already overwhelmed by choice.

Comment

MTD rules require businesses to keep records digitally and submit tax returns from those records using MTD-compatible software. It may come as a surprise to some taxpayers that HMRC does not, and will not, provide this software.

Also, don’t forget, the basis year change starts with a transitional year in 2023/24. This is seen as a necessary precursor to MTD ITSA. Please see our earlier Bulletin.

Whether there is enough awareness of that reform would also be interesting to know, given that it covers a similar target taxpayer population.

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All the recent changes being implemented to solve the NHS pensions problems.

Whilst there were no new pensions related announcements in the NHS Long Term Workforce Plan published on 30 June, it did make reference to some of the changes that are already in plan. These, along with the pensions tax changes announced in the March 2023 Budget, have seen a significant shift towards resolving many of the key issues facing high earnings members of the NHS pension scheme.

A key stated motive for the increase in the annual allowance and the removal of the lifetime allowance (LTA) announced in the March 2023 Budget was to aid staff retention within the NHS. 

The abolition of the LTA resolves one of these issues entirely. Members can now build up as much pension as possible without fear of an LTA charge. The change removes a significant disincentive to continue working.

However, the annual allowance was often the bigger issue. The increase from £40,000 to £60,000 will help with the problem and ensure many consultants and GPs will not have to face regular annual allowance charges. There are still likely to be spikes in pension inputs above the annual limit caused by things such as the way NHS pay scales reward length of service, and whenever they take on additional pensionable responsibilities. However, the higher annual allowance, coupled with, as time goes by, potentially more carry forward being available, should mean that annual allowance excesses are far less frequent. 

For very high earners there is still the issue of tapering. However, the increase in the Adjusted Income limit will move more NHS workers out of scope. Many NHS workers in this bracket are likely to have an element of private earnings and, in many cases, can control their level of taxable income by using limited companies to perform their private duties.

As well as the increase in the annual allowance there were also a couple of technical changes to the way the pension inputs will be calculated, which aim to further reduce potential annual allowance issues.

The first applies to all public sector pension schemes and will allow negative inputs in a legacy final salary section of the scheme to be offset against the pension inputs in the career average section. Negative inputs can occur where the inflation rate used in the pension input calculation exceeds the annual increase in the pay or revaluation rate used for calculating the final salary benefits.

The second change intends to correct the fact that there is a disconnect between the inflationary offset used in the tax calculations for the pension input calculation and the one used to revalue benefits in the schemes. Without the amendment, the steep rise in inflation would have created some very high pension inputs, which are arguably unfair as the pension input is only supposed to represent the increase in benefits above inflation.

To resolve this, the effective date of the revaluation of Career Average Revalued Earnings (CARE) schemes was moved from 1 April to 6 April with effect from 6 April 2023. For the 1995 scheme and 2008 schemes the date used to revalue lifetime earnings, i.e. the ‘dynamizing factors’, was also moved from 1 April to 6 April. The change to the CARE scheme will impact all members, whereas the change to the older schemes only applies to practitioner earnings. The changes have the effect of aligning the CPI values. This will also mean that the inflationary part of the pension ‘growth’ will now move into the next tax year. So, rather than the increase being reflected in a 2022/23 pension input it will now move to the 2023/24 tax year.  

Tax year 2022/23 will be a transitional year which means, effectively, there will be no revaluation element within the calculations and, so, this should mean lower pension inputs. 

Note, however, there is no change to the calculation for non-practitioner members in the final salary sections of the scheme. The pension inputs will still be based on any increases in their final salary between the start and the end of the pension input periods.

In addition to the tax related changes, new retirement flexibilities have been introduced as a further part of the plan to aid staff retention by offering options that will remove some of the issues within the 1995 section of the scheme that appear to encourage employees to retire early.

From April 2023 – retire and re-join

Under the previous rules, members who took their 1995 benefits were not allowed to build up any further pension in the 2015 scheme. Any further work had to be on a non-pensionable basis.

Members can now retire and take their full benefits from the 1995 scheme, then return to work after a break of at least 24 hours. They can then re-join the 2015 scheme and continue to build up benefits.

This is an important change because there are no late retirement factors in the 1995 scheme and, so, no incentive to continue in the 1995 scheme beyond age 60. Many employees therefore chose to retire at 60. The change removes a key disincentive to work beyond age 60.

However, it will mean those taking their 1995 pension benefits will be subject to high marginal rates of income tax if they are taken before they are actually needed where the member continues in employment.

The previous restriction for ‘retire and return’ workers meant members of the 1995 scheme were limited to working 16 hours a week for the first month after re-employment. This restriction is now removed, and members simply need to take a 24-hour break and can then start building 2015 benefits immediately. Members will, however, be required to enter a new contract of employment. Whilst this will need to be agreed locally with their employer, the Government stated that it would “strongly encourage employers to offer staff the same terms and conditions on this new contract should they decide to retire and return”.

From October 2023 – partial retirement

This new option allows those who have reached the normal minimum retirement age to take between 20% and 100% of their 1995 pension benefits in one or two stages without having to leave their job. They can take the benefits from the 1995 scheme, continue to work and build up benefits in the 2015 scheme.

To take advantage of this option, employees must reduce their pensionable pay by at least 10%. GPs and other practitioners must reduce their NHS commitments by at least 10%.  

Where benefits are taken before the normal pension age for the scheme (age 60 for most, but 55 for certain occupations) the usual early retirement reduction factors will apply.

Comment

The full package of measures undoubtedly improves the position for high earners in the NHS pension scheme. The significant improvement in the tax position along with the additional retirement flexibilities are welcomed and should provide some help with staff retention. The ability to take benefits from the 1995 section of the scheme and continue to accrue benefits in the 2015 scheme without fear of an LTA charge removes a strong incentive to retire at age 60.

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The transitional year of basis period reform is now underway. It will be important to ensure that any available overlap relief is used. However, getting hold of information about overlap relief may be tricky.

We have commented previously about the reforms to the basis year calculations for self-employed sole traders and partners. This tax year, 2023/24, is the transitional year for these reforms. Our most recent Bulletin covered this. Our earlier Bulletin outlined how the reforms will operate, and a subsequent Bulletin added an update on MTD ITSA.

To help explain what is happening this tax year, consider the situation for an individual who has a trading year ending on 30 April. Under the pre-2023/24 basis year system, the end April date had the advantage of deferring tax because in any tax year, the calculation of tax was based on roughly 11 months of profit in the previous tax year. For example, in 2022/23, the taxable profit would be based on the trading period ending on 30 April 2022.

In 2023/24, the advantage of 30 April year end morphs into a disadvantage because tax will be based on:

1. Trading income to 30 April 2023, plus
2. Trading income from 1 May 2023 to 5 April 2024 (341/366ths of the trading year to 30 April 2024 as 2024 is a leap year), less
3. Any unused overlap relief available.

By default, the sum of 2 and 3 (the transitional profits) will be divided by five and spread over five tax years – 2023/24 to 2027/28.

Overlap relief

If the individual used an accounting date between 6 April and 30 March when they started their business, they may have paid tax twice on some of their profits and be entitled to overlap relief. So, in the above example, roughly the very first 11 months of profit would have been taxed twice. That could have been some considerable time ago.

Usually, businesses can only use overlap relief to get this tax back when they stop trading or when they change their accounting date. However, HMRC will allow any business that uses any accounting period and that has unused overlap relief to use it in the 6 April 2023 to 5 April 2024 transition year.

HMRC has now announced that, this summer, it is planning to launch an online form for submitting requests for details about overlap relief. This will provide an easier way to submit requests and make sure that these are dealt with separately from general post.

HMRC will also be publishing additional accompanying guidance on overlap relief and the changes to the rules for the new tax year basis.

Taxpayers with an accounting date other than 31 March or 5 April who are affected by the move to the new tax year basis may need to find out the details of their overlap relief. They’ll need to do this ahead of submitting returns for the 2023/24 transitional year.

Overlap relief information can only be provided if these figures are recorded in HMRC systems, taken from information submitted by taxpayers as part of previous tax returns. If this information has not been submitted in tax returns, HMRC will not be able to provide it.

When looking at a request for overlap relief information, HMRC needs some details about a business to be able to find the correct figures to report back to the taxpayer. If anyone wants to submit a request for information ahead of the launch of the online form, HMRC asks that they provide as much of the following information as possible:

• taxpayer name;
• National Insurance number or Unique Taxpayer Reference (UTR);
• either name or description of business, or both;
• whether this business is a sole trader or part of a partnership;
• if the business is part of a partnership, the partnership’s UTR;
• date of commencement of the self-employed business, or date of commencement as a partner in a partnership (if not known, then the tax year of commencement);
• the most recent period end date up to which the business used to report its profit or loss.

Ahead of more guidance being published on GOV.UK, information on overlap relief and basis period reform is provided in the Business Income Manual. Information is also available in a GOV.UK news article on basis period reform.

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Laura Trott lays out regulations to allow for delay in the accessibility of the Pension Dashboard until the last quarter of 2026.

In a written ministerial statement, Laura Trott says:

“Pensions dashboards will transform the way in which people plan for retirement. On 2 March 2023, I announced that the Pensions Dashboards Programme would require additional time to deliver the connection of pension providers and schemes, in accordance with the connection deadlines set out in the Pensions Dashboards Regulations 2022 and the Financial Conduct Authority’s corresponding pensions dashboard rules.

More time is needed to deliver this complex build, and for the pensions industry to help facilitate the successful connection of a wide range of different IT systems to the dashboards digital architecture. As part of our reset of the Pensions Dashboard Programme, I am today laying amending Regulations with a new approach to delivery that allows us to work more collaboratively with the pensions industry. Rather than setting out the entire staging timeline in legislation, we will instead set this out in guidance which we will collaborate on with industry this year. This will give the Pensions Dashboards Programme the flexibility it needs to ensure this complex project is completed effectively.

In recognition that the requirement to connect to the digital architecture should remain mandatory, we will include a connection deadline in legislation of 31 October 2026. This is not the Dashboards Available Point – the point at which dashboards will be accessible to the public – which could be earlier than this.

The Government remains as committed as ever to making pensions dashboards a reality and we are ambitious about their delivery. I am confident that this re-appraised approach will enable us to make significant progress on delivering dashboards safely and securely, enabling consumers to take advantage of their benefits to plan for retirement.”

Comment

Although there have already been delays, this acknowledges that there is still a lot to be done to provide a working and useful dashboard for the public. It is better that it is launched when finished than pushed out half-finished and possibly with errors. If the data provided isn’t up to standard from day one, it could lose credibility with the public and would just be a waste of all the time and effort already put in by the industry.

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The Treasury has published a call for evidence on potential improvements to SAYE and Share Incentive Plan (SIP) schemes.

On 5 June, the Treasury launched a call for evidence on the Save As You Earn (SAYE) and Share Incentive Plan (SIP) employee share schemes. The call, which had been trailed in the March Budget, is accompanied by an HMRC evaluation of both schemes, alongside the Company Share Option Scheme (CSOP). The CSOP is not part of the call for evidence, but following a Budget announcement that scheme was revised from the start of 2023/24. There was a doubling of the option limit to £60,000 and a relaxation of the definition of eligible shares.

Neither the SAYE nor SIP schemes have shown much growth in recent years, as the graphs below, based on the latest (2020/21) HMRC data, show:

The SAYE scheme has not been helped by the zero bonus returns on offer from 2014. Even with the new bonus provisions recently announced (please see our earlier Bulletin) the return on offer with the Bank (Base) Rate at 4.75% will be (from 18 August) just 1.75%, albeit tax-free.

Both schemes have also been victims of the dull performance of UK shares. For example, as at 6 June 2023, the FTSE 100 Index was 1.3% below its level of five years previous.

Comment

As we approach the next election, there is no sign that the Labour Party will be revising its 2019 manifesto proposal to transfer 10% of all company equity to employees over ten years.

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From tax year 2023/24 onwards, the self-assessment threshold for individuals taxed through PAYE only, will change from £100,000 to £150,000.

HMRC has confirmed that affected taxpayers do not need to do anything now as the self-assessment threshold for 2022/23 tax returns remains at £100,000.  They will receive a self-assessment exit letter if they submit a 2022/23 return showing income between £100,000 and £150,000 taxed through PAYE and they do not meet any of the other criteria for submitting a self-assessment return.

For the 2023/24 tax year onwards, taxpayers will still need to submit a tax return if their income taxed through PAYE is below £150,000 but they meet one of the other criteria for submitting a self-assessment return, such as:

• receipt of any untaxed income;
• partner in a business partnership;
• liability to the High Income Child Benefit Charge;
• self-employed individual and with gross income of over £1,000.

Taxpayers can check whether they need to submit a return here.

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Taxpayers who have sold a property, which was not their main residence, must file a capital gains tax (CGT) return within 60 days of completion if a chargeable gain arises. However, there are some interesting rules that could catch taxpayers out.

UK residents, who make a disposal of UK residential property must use the CGT on UK Property Account to report, and pay to HMRC, any CGT arising from the disposal within 60 days of disposing of the property.

(Non-UK residents must report all disposals of UK property to HMRC, even if there is no tax to pay or they have made a loss. This includes any disposal of residential or non-residential UK land and indirect disposals of UK property.)

Quite interesting point number 1

The 60-day rule is based on the completion date, not the exchange date. So, for example, if the exchange date was, say, 15 March 2023, but the completion date was, say, 15 April 2023, then the deadline for submission of the return, and payment of any tax due, is 14 June 2023.

There is no need to report any disposal where there is no CGT liability (although it is possible to report on a voluntary basis). So, if the gain is fully covered by the private residence exemption, annual exemption (£12,300 for a disposal in 2022/23, £6,000 for a disposal in 2023/24, or £3,000 in 2024/25 onwards), brought forward or current year losses, or where a CGT relief applies which reduce the gain to nil, there will be no liability. Note that for this purpose, it is normally necessary to use the date of exchange (unless the contract is subject to conditions, in which case the date of disposal is the date on which all the conditions are satisfied, i.e. the date the contract becomes unconditional).

So, continuing the above example, if the exchange date was 15 March, but the completion date was 15 April, the disposal would have taken place in the 2022/23 tax year and can benefit from a £12,300 annual exemption. Any current year losses to be deducted would have to have been incurred in the 2022/23 tax year.

The annual exempt amount should be deducted in the most tax effective way. In other words, it should be deducted from gains which are subject to tax at the highest rate in priority to those taxed at the lower rate(s). Capital losses are similarly allocated in the most tax effective way. However, in setting off capital losses, the following general rules apply:

• all capital losses must be claimed;
• capital losses must first be set off against capital gains in the same tax year (deducted in the most tax efficient way);
• after reducing the current year gains to nil, the excess is carried forward to set against gains in future tax years (deducted in the most tax efficient way);
• allowable capital losses can be carried back on the taxpayer’s death.

Quite interesting point number 2

As set out above, current year losses must be set against current year gains. This is automatic; the taxpayer has no choice.

However, only current year losses that arise prior to the date of exchange for the disposal of UK land can be set against the property gain (whether or not the loss has yet been reported to HMRC) for the purposes of completing the CGT on UK Property Account return and calculating the CGT due on account. Current year losses that arise after the date of exchange for the disposal of UK land cannot be taken into account in real time.

So, expanding on the above example, if a capital loss was incurred on say the disposal of some shares, on 31 March 2023, the taxpayer would not be allowed to deduct that capital loss from their gain on the property disposal when completing their CGT on UK Property Account return and would not be able to use that loss to reduce the CGT payable on account.

They would have to wait until completing their self-assessment tax return to be able to deduct that current year capital loss from their gain on the property disposal.

The taxpayer will have paid too much CGT on account, due to the allowable current year loss having been realised later in the tax year, and a self-assessment tax return must be filed to report the loss and correct the CGT position.

Note that this issue only affects current year losses. Losses brought forward have been quantified already and can be set against the gain on the CGT on UK Property Account return and the taxpayer would be able to use those losses to reduce the CGT payable on account.

It’s extremely important, therefore, to carefully consider the timing of disposals. Remember that it is normally the date of exchange that decides in which tax year a capital gain or loss on a property disposal falls, not the date of completion (even though the 60-day reporting deadline is based on the date of completion). And, triggering a capital loss to offset against an earlier property capital gain in the same tax year will not result in a reduction in the CGT payable on account, and although the taxpayer will get the tax back after they submit their self-assessment tax return, that could be some time later.  

For more information, please see CG-APP18 Capital Gains Tax (CGT) on UK Property Account guidance. The guidance is very detailed and includes all of the information required to report the gain and pay the tax using HMRC’s CGT on property account, whether there has been one disposal or multiple disposals. It also includes information on mixed use properties, the interaction with investment bond chargeable event gains, and, where a CGT relief, for example, business asset disposal relief, applies.

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Amongst a range of measures intended to reduce fraud, the Government says it will extend the ban on cold calls to cover all financial and investment products.

Under the Financial Guidance and Claims Act 2018, cold calls are already banned from personal injury firms and pension providers (unless the consumer has explicitly agreed to be contacted). However, the Government says that it will consult on a wider ban on cold calls by the summer, with implementation to follow as soon as possible. This means that the public will know that cold calls about financial products are a scam and should have the confidence to hang up should they receive one of these calls.

A cold call is defined in the Government’s Policy Paper as “Making an unsolicited call to sell a product – in some cases these are legal, in others they are not (such as when making a call to someone registered with the Telephone Preference Service or when selling certain products like pensions or injury claims services).”

Other measures included in the Policy Paper are that the Government will:

• establish a new national fraud squad with over 400 new posts and make fraud a priority for the police;
• deploy the UK intelligence community and lead a new global partnership to relentlessly pursue fraudsters wherever they are in the world;
• put more fraudsters behind bars through better investigation and prosecution processes for fraud and digital offences;
• ban SIM farms which are used by criminals to send thousands of scam texts at once;
• stop fraudsters from being able to send mass text messages by requiring mass texting services to be registered, subject to a rapid review;
• Replace Action Fraud with a state-of-the-art system for victims to report fraud and cyber crimes to the police;
• stop people from hiding behind fake companies and create new powers to take down fraudulent websites;
• work with industry to make sure that intelligence is shared quickly with each other and law enforcement;
• change the law so that more victims of fraud will get their money back;
• overhaul and streamline fraud communications so that people know how to protect themselves from fraud and how to report it;
• make the tech sector put in place extra protections for their customers and introduce tough penalties for those who do not; and
• shine a light on which platforms are the safest, making sure that companies are properly incentivised to combat fraud.

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