Tax Director at PwC UK comments on Indirect Tax announcements

Victor Cramer, Tax Director, PwC UK, said:

"Today’s Budget contained a welcome investment in HMRC. Historically, investment in its compliance functions has yielded disproportionate returns, while businesses should also benefit from a better-resourced tax authority and faster response times. 

“The extension of the Online Marketplace Rules was expected and reflects announcements already made. Similarly, the Chancellor’s confirmation that he will address the geographical VAT disparity between minicab firms was an anticipated step towards resolving a complexity arising from ongoing litigation.  

“The gaming sector will be relieved that Machine Gaming Duty will rise from 20% to 25% for higher-stakes machines, rather than the increase to as much as 40% that had been mooted. However, excluding adult gaming centres from business rates relief will increase the burden on those businesses.  

“There does, however, appear to be some tension in the Government’s approach, given the apparent commitment to protect family entertainment centres at seaside resorts. Much will depend on how these measures are implemented in practice.  

“Confirmation of the expected zero rating of land sold for social housing was a welcome measure, but it remains to be seen whether it will provide a meaningful incentive for the construction of more social housing.”  

Our full budget reaction