Under the heading of “tackling the tax gap”, a number of measures featured including doubling the maximum sentence for the most egregious cases of tax fraud from seven to 14 years.
HMRC’s debt management capability
The government is investing £47.2 million in order to improve HMRC’s capability to collect tax debts. This is also designed to allow HMRC to better distinguish between taxpayers who can afford to settle their tax debts but choose not to, from those who are temporarily unable to pay.
Support will continue to be provided to taxpayers who are temporarily unable to pay by enhancing the online Self-Serve Time To Pay service, whilst also providing HMRC with additional capacity to ensure that those who can afford to settle their debts do so.
Tackling promoters of tax avoidance
The government intends to consult on the introduction of a new criminal offence for promoters of tax avoidance who fail to comply with a legal notice from HMRC to stop promoting a tax avoidance scheme. This will also examine expediting the disqualification of directors of companies involved in promoting tax avoidance, including those who exercise control or influence over a company.
Self-Assessment for cryptoassets
The government is introducing changes to Self-Assessment tax return forms requiring amounts in respect of cryptoassets to be identified separately. The changes will be introduced on forms from the tax year 2024/25.
Capital gains assessment time period
An avoidance loophole which can leave HMRC out of time to assess tax due on capital gains when an asset is disposed of under an unconditional contract is being closed. The changes will apply in relation to contracts entered into on or after 1 April 2023 for corporation tax and 6 April 2023 for capital gains tax.