The way VAT is administered for businesses in the construction industry is changing from 1 October 2019.  Organisations operating in this sector need to plan for these changes now so they are ready when the new rules take effect.

A capital gains tax (CGT) exemption applies when an individual disposes of a dwelling that has been used as their only or main residence under the Private Residence Relief (PRR) rules. The exemption applies as long as the relevant conditions are met throughout the total period of ownership. This relief is supplemented by ancillary reliefs that aim to deal with other related situations.

​The government has previously announced and legislated to reform two of the ancillary reliefs  to better target PRR at owner-occupiers. The reliefs which are being amended are:

• the final period exemption will be reduced from 18 months to only nine months, although the special rules that give those with a disability, and those in care, an exemption of 36 months will not change
• lettings relief will be reformed so that it only applies where an owner is in shared occupancy with a tenant.

These changes will take effect from 6 April 2020. The government is now consulting on the changes in more detail and on how they will work in practice. It also invites views on some technical aspects of the PRR rules.
Internet link: GOV.UK consultation

The government has launched a consultation on proposed reforms at Companies House, including a 'major upgrade' of its register.
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The consultation aims to tackle misuse of the register. It also strives to provide business owners with 'greater protection from fraud'.

A report by the Office of Tax Simplification (OTS) calls on the government to prioritise action to 'address long-standing concerns about the experience of smaller businesses'. The report considers the business lifecycle, especially those starting up and provides recommendations in five areas:

• providing simple step-by-step guidance about the key things a business needs to do in its early days to help things run smoothly
• improving the operation of the PAYE system
• implementation of HMRC's Agents Strategy
• improving the mechanics of the Corporation Tax return process
• ensuring that tax changes are built on an understanding of business processes.

If you would like any help with your taxes at any stage of your business life cycle, please do get in touch.
Internet link: GOV.UK simplifying tax