Five things you need to know about tax, Friday 8 September 2023

In Irish news this week, the Minister for Finance has welcomed growth in the domestic economy and Revenue has updated VAT guidance to reflect the application of the 13.5 percent rate of VAT from 1 September 2023. In UK news, HMRC interest rates increased again last month, and, in our lobbying update, read our letter to the Financial Secretary to the Treasury on changes to the geographical scope of agricultural property relief. In International news, the OECD has published a paper on the taxation of labour and capital.

 Ireland

1. While welcoming growth in Modified Domestic Demand in the second quarter of the year, the Minister for Finance noted that there were ‘several headwinds’ including constraints in infrastructure and slower growth among trading partners, and that it would be against this backdrop that Budget 2024 would be framed.
2. Following the cessation of the temporary 9 percent VAT rate applying the goods and services in the tourism and hospitality sector on 31 August 2023, Revenue has updated several VAT Tax and Duty Manuals to reflect the application of the 13.5 percent rate of VAT from 1 September 2023.

   UK

3. HMRC interest rates have increased again.
4. In our lobbying update, read the Northern Ireland Tax Committee’s letter to the Financial Secretary to the Treasury on changes to the geographical scope of agricultural property relief.

   International

5. The OECD has published a paper comparing the tax treatment of labour and capital income.

Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount.

You can also read this week’s EU exit corner here which features news of the phasing in of exports moving from CHIEF to the Customs Declarations Service and a delay to the implementation of the new UK Border Target Operating Model for imports into the UK, including Ireland.