AAT public affairs and public policy activities: August 2021

Every month AAT highlights some of the key public affairs and public policy activities undertaken on behalf of our 140,000 members.

Below you'll find some key highlights for July 2021.

If you'd like any further information about any of these issues, please contact Phil Hall, AAT Head of Public Affairs & Public Policy, via Twitter or via email.

AAT urges government to do more on environmental tax policy

Last month, a letter was sent to Alok Sharma MP, COP26 President, setting out several areas of tax policy that appear to be incompatible with the government's commitment to reaching “net zero” by 2050. This was viewed by several thousand people on LinkedIn, covered by various news outlets including Bloomberg and Citywire, and praised by numerous organisations, MPs and members of the House of Lords.

Another AAT result?

In 2018, AAT produced a report that recommended aligning entitlement to free prescriptions with the State Pension Age instead of the current age of entitlement (60).

As we said then: "Raising the age of eligibility for certain pensioner benefits such as free prescriptions to match the state pension age (and ensuring they rise with any rise in the state pension age) ... would save a substantial sum of money for the taxpayer, continue to ensure all pensioners enjoy free prescriptions, provide greater clarity to all as to when eligibility begins and help address the issue of intergenerational fairness."

The Department of Health and Social Care is now proposing to do exactly this and is currently consulting on the issue. AAT has responded to the consultation and supports the idea.

AAT continues push for Capital Gains Tax reporting extension

Since April 2020, the Capital Gains Tax (CGT) due on eligible residential property sales has had to be reported and paid within just 30 days compared to the 12 months-plus that sellers previously had to report such sales. AAT has long recognised the challenging nature of this timescale and has previously called for the deadline to be 60 rather than 30 days. An increasing number of organisations and individuals are making the same argument. The case was again made in AAT Comment last month. AAT has also met with HMRC to discuss the issue and will be writing to the relevant Minister later this month to press the matter further.

Parliamentary engagement

Engagement with five parliamentarians took place in August, primarily relating to COP26 and tax policy.

Non-parliamentary engagement

Engagement with 40 external stakeholders took place in August. These included Keep Britain Tidy, Accountancy Europe, Airbnb, HMRC and Companies House on issues including sustainable tax, CGT reporting, Companies House Reform, tax reporting for online platforms and much, much more.

AAT consultations, calls for evidence and inquiry responses

AAT responded to the Department of Health and Social Care consultation on free prescriptions, the Ministry of Justice consultation on probate fees, the Financial Conduct Authority consultation on diversity and inclusion at listed companies, and Parliament's Environment, Food and Rural Affairs Committee consultation on plastic waste.

These and other responses can be viewed on the AAT public policy page.

Other meetings, events and engagements

• Phil Hall participated in the regular HMRC Virtual Communications Group (VCG).
• Phil met with the accountancy lead at the National Cyber Security Centre (NCSC) for their regular bi-monthly catch-up.
• Phil met with directors at Forrest Brown R&D Tax Credit Specialists to discuss the AAT campaign to regulate unregulated accountants and tax advisors.
• Phil met with Chartered Institute of Payroll Professionals (CIPP) to discuss areas of common policy interest.
• Adam Harper attended the regular Representative Bodies Steering Group (RBSG) with HMRC.