It said: "Due to the ongoing effects of Covid-19, now is a difficult time for social enterprises, many of which are supporting communities across the UK through the pandemic.
"As such, at Budget 2021 the government announced it would extend SITR in its current form beyond its sunset clause of April 2021, for two years, in order to continue supporting investment to social enterprises in most need of growth capital."
5. Holiday homes
As part of its proposed clean-up of business rates, the government has announced it will legislate to tighten tax rules for second property owners, meaning they can only register for business rates if their properties are genuine holiday lets.
According to the document, in England, many holiday lets are liable to pay business rates, rather than council tax, when an owner declares that they intend to let their property in the next year. At present, there are no requirements for people to prove these are rented out commercially.
They may also be able to claim rates relief of up to 100 per cent.
However, under changes proposed on March 23, owners of properties that are not genuine businesses will not be able to reduce their tax liability by declaring that a property is available for let, but make little or no realistic effort to actually let it out.
Of the over 60,000 holiday lets currently on the business rates list, the Treasury claims 96 per cent have a rateable value which would likely qualify them for Small Business Rates Relief and, as a result, they pay no business rates at all.
However, this might necessitate conversations with clients who have a 'holiday home' they like to let out during the year to friends and acquaintances.
The government also published an interim report on its Fundamental Review of Business Rates, which sets out a summary of responses to last year’s call for evidence. The final report will be published in the Autumn.
Looking ahead
While capital gains tax did not get an airing this Tax Day, as had been widely anticipated, commentators believe this is only a brief reprieve - the OTS wants to simplify rates of CGT and changes are expected further down the line.
Andrew Dixon, head of financial planning for Kleinwort Hambros, says: “CGT is an obvious policy to be revisited in the Treasury’s latest review - dividends and capital gains both reflect the profits of a company but are subject to different taxes.
"That CGT remains untouched may be a relief to many business owners, but this is a direct contradiction of the proposal by the OTS to change rates and cut the annual exemption (currently £12,300) to between £2,000 and £4,000."
