HMRC should implement standardised tax regulations for gifts to ensure they apply equally to all taxpayers, including politicians, according to tax and advisory firm Blick Rothenberg.
Robert Salter, a Director at the firm, has called for greater clarity and consistency in gift taxation, noting that while media personalities and social influencers are taxed on gifts, politicians often receive gifts tax-free.
Salter highlighted that HMRC does not classify gifts, even those related to work, given to politicians as taxable income. This is in contrast to other sectors where similar gifts are taxed. He stressed that the current laws, while intricate, do not classify donors or recipients as lawbreakers if these gifts are not declared as taxable income.
Salter makes the case for implementing uniform rules across all sectors to streamline the existing system that demands individual case scrutiny. He suggests that HMRC should establish clear, standard rules and also take into account a reasonable de minimis limit (for instance, gifts over £1,000 in a tax year) to ensure that smaller gifts do not incur tax obligations.
