News round up

HMRC’s official interest rate cut

The official rate has been cut from 2.25% to 2% from 6 April 2021. This will help directors or employees who have a beneficial loan from their employer, as well as directors with an overdrawn current account with their company.

Simplification of VAT rules on land and buildings

The government has launched a call for evidence to look at potential options and ideas to simplify the land and property VAT exemption. There are now 15 exceptions to the exemption (originally just four), with some 26 sets of notes.

OTS proposal to change the tax year

The tax year has begun on 6 April since 1800, but the Office of Tax Simplification is looking at the implications of altering the date. Any change is likely to be to 1 April to align with the financial year, but 1 January is also possible.

Business rates consultation

As part of its review of business rates, HMRC has launched a consultation on moving the revaluation cycle of non domestic property from five years to three years. The consultation will run to 24 August.