THE GOVERNMENT has been forced to climb down over two controversial tax measures announced in the March Budget.
Chancellor George Osborne has been forced into a U-turn over plans to charge VAT on hot takeaway food from bakeries and supermarkets, while also amending plans to tax static caravans at the full rate of VAT.
The Treasury said yesterday that the so-called “pasty tax” would not be applied to food that is cooling down after being removed from the oven, even if it is still hot at the time of purchase.
In addition, tax levied on static caravans that are used as holiday homes will be cut to 5% from April next year.
The amendments are expected to cost the Treasury £70m.
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT
The government is pressing ahead with changes to the way it taxes individuals with a foreign domicile
I will feel slightly awkward when I write to the client who is about to receive a large invoice from the PAYE expert, offering him the fee protection going forward