UK tax update January 2024

• Reforms to IHT: A report by the Institute for Fiscal Studies has made a number of potential suggestions focusing on “incremental reforms which build on the current structure of inheritance tax”, which are likely to feed into the wider debate about IHT ahead of the general election.
• Domicile case law: The recent cases of Shah v HMRC and Strachan v HMRC indicate the importance of taking concrete steps to demonstrate one’s domicile.
• Pandora Papers: HMRC has begun writing to UK-resident taxpayers named in the “Pandora Papers” leak.
• Tax burden: The UK’s tax-to-GDP ratio continues to rise, perhaps as a result of fiscal drag.

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