Chancellor Rishi Sunak has asked the Office of Tax Simplification (OTS) to carry out a thorough review of capital gains tax (CGT).

In a letter to the OTS, the Chancellor requested that the independent office review CGT and aspects of the taxation of chargeable gains in regard to individuals and small businesses.

Mr Sunak requested that the review identifies and offers advice on the opportunities to simplify the taxation of chargeable gains to 'ensure the system is fit for purpose'.

In the letter, the Chancellor said that he would be interested in proposals from the OTS on the regime of allowances, exemptions, reliefs and the treatment of losses within CGT, in addition to the interaction of how gains are taxed compared to other types of income.

The OTS has published a call for evidence in the form of an online survey, which seeks views on CGT. The OTS wants to hear from businesses, individuals, professional advisers and representative bodies about which aspects of CGT are complex and difficult to get right, as well as suggestions on how the tax can be improved.

More information on the survey can be found here.

UK businesses have now borrowed over £46 billion through the government-backed schemes that are helping firms during the coronavirus (COVID-19) crisis, according to the latest figures from the Treasury.

In total, £46.3 billion has now been lent to over 1.1 million businesses through either the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) or the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

The BBLS remains the most widely used of the support schemes available, with over £31.7 billion lent to more than a million businesses. The BBLS allows small businesses adversely affected by the pandemic to apply for up to £50,000, with the government guaranteeing 100% of the advance.

Lenders have provided £11.9 billion to 54,500 businesses through the CBILS, while loans of £2.7 billion have been approved to over 400 mid-sized and larger UK businesses through the CLBILS.

Commenting on the figures, Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said: 'This significant level of support demonstrates the clear commitment from the banking and finance industry to help businesses get through these tough times.

'This sits alongside the broad package of measures from the industry including commercial lending, capital repayment holidays, extended overdrafts and asset-based finance, ensuring that businesses can receive the right support that suits their needs.'

Three quarters of UK businesses are not fully prepared for the end of the Brexit transition period, according to a survey conducted by the Institute of Directors (IoD).

Nearly half of the 978 company directors polled in late June said they have not been able to prepare. One in seven said that the coronavirus (COVID-19) has negatively impacted preparations, while a third said that a lack of clarity on a deal between the UK and the EU was preventing changes.

Over two thirds of directors said that reaching a deal was important for their organisation.

Amongst those directors that favour being able to diverge from EU rules, 71% agreed that securing a deal is important for the economy.

Commenting on the survey, Jonathan Geldart, Director General of the IoD, said: 'A commitment to some form of reciprocal phasing-in of changes once clear is a long-standing ask from our members, and the benefits would be significant. At a time when government is rightly straining every sinew to help firms deal with widespread disruption, it would be counterproductive not to seek to minimise it at the end of the year.'

The rise in homeworking caused by the coronavirus (COVID-19) pandemic has created new vulnerabilities for criminals to exploit, according to research from cyber experts CyberCube and insurance broker Aon.

According to the report, homeworking has exposed new access points for cyber criminals to gain entry to corporate systems, including domestic PCs, laptops and Wi-Fi routers.

It has also led to a diminution in employees' distinction between work and personal emails and an increase in the use of devices with insecure passwords. 

According to the research, workers based at home are more likely to use online applications that would be prohibited in the corporate environment due to security concerns.

Criminals have also exploited the public's need for information on COVID-19 to create a range of social media and text message attacks, particularly in those countries worst affected by the virus.

Jon Laux, Head of Cyber Analytics at Aon, said: 'The lesson this report draws is that cyber security at home is a different animal to cyber security in the workplace. Organisations are going to have to think more laterally. They'll need to be more user-centric with a particular focus on employees' own devices and the cloud-based applications they use.

'The traditional approach to cyber security must be replaced by something that recognises users will operate in a decentralised and remote fashion. For large organisations, that's going to create a lot of change management to handle.'

Self-employed workers who are struggling due to the coronavirus (COVID-19) pandemic can defer their second 2019/20 self assessment payment on account, HMRC has reminded taxpayers.

The second self assessment payment on account for 2019/20 is ordinarily due at the end of July. However, the government has said that it will allow the self-employed to defer this payment as well as utilise the grants available through the Self-employment Income Support Scheme (SEISS).

Taxpayers do not need to contact HMRC to defer their payment on account; they can opt into the deferral by simply not paying their tax bill due by 31 July 2020.

If no payment is received, HMRC will automatically update their systems to show payment has been deferred and no interest or penalties will be incurred, providing it is paid in full by 31 January 2021.

Angela MacDonald, Director General of Customer Services at HMRC, said: 'We want to support taxpayers as much as possible as they face uncertainty and difficult circumstances. That's why we want to remind those who may struggle to pay a tax bill right now that they have the option to defer their self assessment payment. They don't need to do anything to take advantage of this deferral. By simply not paying, HMRC will know they have deferred and we will do the rest.'

We can help with all aspects of self assessment, including filing returns on your behalf. Please contact us.

Following the reduction in the rate of residential Stamp Duty Land Tax (SDLT), the Welsh government has announced that it will reduce the rate of Land Transaction Tax (LTT).

LTT is payable by the purchaser of residential or non-residential property in a land transaction occurring in Wales. SDLT is payable on land transactions in England and Northern Ireland, and Land and Buildings Transaction Tax (LBTT) is payable on land transactions occurring in Scotland.

From 27 July 2020, the starting threshold for residential LTT will rise from £180,000 to £250,000. This will apply until 31 March 2021. The tax reduction will not apply to purchases of additional properties, including buy-to-let and second homes.

The Welsh government predicts that around 80% of homebuyers in Wales will pay no tax when purchasing their home, and that buyers of residential property who would have paid the main rates of LTT before 27 July will save up to £2,450 in tax.

Commenting on the matter, Rebecca Evans, Minister for Finance, said: 'These rates and thresholds have been set so they more closely reflect the property market in Wales and will ensure that we retain a progressive regime that expects those with the broadest shoulders to contribute a larger share in tax.'

More information can be found here.

The Scottish government will reduce the rate of Land and Buildings Transaction Tax (LBTT) following a similar reduction to the rate of residential Stamp Duty Land Tax (SDLT) announced by Chancellor Rishi Sunak in the recent Summer Economic Update.

LBTT is payable by the purchaser in a land transaction occurring in Scotland. SDLT applies to land transactions in England and Northern Ireland, and Land Transaction Tax (LTT) applies in Wales.

The threshold at which residential LBTT is paid will be raised from £145,000 to £250,000 in order to help homebuyers following the coronavirus (COVID-19) lockdown. Announcing the change, Finance Secretary Kate Forbes said that 80% of homebuyers will be exempt from paying LBTT.

Commenting on the issue, Joanne Walker, Scottish Technical Officer at the Chartered Institute of Taxation (CIOT), said: 'Once implemented, the changes will mean that an additional 34% of transactions will be taken out of LBTT, taking the total to 79%. This will generate a maximum saving to taxpayers of £2,100.

'That said, it remains the case that across the UK there is still some uncertainty over who gains from a change of this kind. A 2011 study found that previous cuts to help first-time buyers were mostly absorbed in a higher house price, benefitting sellers rather than purchasers.'

Legislation is to be introduced to the Scottish Parliament to provide the revised residential LBTT rates and bands. These will apply to all relevant transactions where the effective date is between 15 July 2020 and 31 March 2021.

The UK economy shrank by 19.1% in the three months to the end of May as the country struggled under the coronavirus (COVID-19) lockdown, according to the latest data from the Office for National Statistics (ONS).

The economy began to bounce back in May, growing by 1.8% as lockdown restrictions began to ease. However, a record drop of 20.4% in April, which was preceded by a 6.9% fall in March, meant the economy shrank during the quarter.

Although the economy rebounded in May, the growth rate expansion was less than the 5% or so that economists predicted. The data came as sectors such as manufacturing, construction, DIY retailers and garden centres were allowed to reopen.

The manufacturing and construction sectors both grew by more than 8% during the month.

Commenting on the data, Jonathan Athow, Deputy National Statistician for Economic Statistics at the ONS, said: 'The economy was still a quarter smaller in May than in February, before the full effects of the pandemic struck.

'In the important services sector, we saw some pick-up in retail, which saw record online sales. However, with lockdown restrictions remaining in place, many other services remained in the doldrums, with a number of areas seeing further declines.'

A government-backed scheme to offer free online advice to help small businesses bounce back from the coronavirus (COVID-19) has been launched.

The Recovery Advice for Business Scheme gives small firms access to free, one-to-one advice with an expert adviser to help them through the COVID-19 pandemic and prepare for long-term recovery.

Advice offered includes bespoke, specialist assistance from accountancy, legal and advertising experts, as well as marketing, recruitment and tech advice to help businesses adapt to difficult circumstances and bounce back as the UK economy recovers.

The Institute of Chartered Accountants in England and Wales (ICAEW), the Chartered Institute of Personnel Development (CIPD), the Advertising Association, the Law Society and the Management Consultancies Association (MCA) are among the professional bodies that have signed up for the scheme.

Commenting on the scheme, Small Business Minister Paul Scully said: 'We have stood by small businesses throughout this crisis, offering a wide-ranging package of financial support. However, it is also important that business owners get easy access to expert advice and support.

'It is incredible to see so many professional advisers stepping up to do their bit for small businesses across the country. This advice platform will help to boost our recovery from the impact of coronavirus, giving small businesses extra support to adapt their business models and come back fighting.'

The Recovery Advice for Business Scheme runs until 31 December 2020. Further information on accessing the support can be found here.