We’re writing to you, following the Chancellor of the Exchequer, Rachel Reeves’ statement on public spending pressures, to the House of Commons on 29 July 2024.
The Chancellor announced next steps and draft legislation on priority tax commitments ahead of a full announcement and costing at the Budget, which is now due to be held on 30 October 2024.
The government has published the Finance Bill 2024-25 draft legislation and technical tax documents.
Measures include:
– 2024: Non-UK domiciled individuals – Policy summary
– Furnished holiday lettings tax regime abolition
– Pillar 2: transitional country-by-country reporting safe
harbour anti-arbitrage rule
– Tax treatment of carried interest – Call for Evidence
– Changes to the Energy (Oil and Gas) Profits Levy.
The government also set out its commitment to tackling tax non-compliance in Fixing the foundations: public spending audit 2024-25.
VAT on private school fees:
Ending of the VAT exemption and the introduction of 20% VAT on education and boarding services provided for a charge by private schools across the UK from 1 January 2025.
There will be an end to the VAT exemption and an introduction of 20% VAT on education and boarding services provided for a charge by private schools across the UK from 1 January 2025.
Schools cannot register yet solely for this charge on education and boarding. In due course, HMRC will provide schools with details on how and where to register.
For more information, please go to GOV.UK and read the Revenue and Customs Brief – removal of the VAT exemption for private school fees and boarding services.
You can also read the full statement, view the draft legislation, the accompanying explanatory note and technical note.
A consultation on the legislation and technical note will run until 15 September.
You can read more about these announcements and see draft legislation and documents online via HMRC’s latest documents published 29 July 2024 on GOV.UK.