HMRC must implement uniform gift tax regulations to ensure they apply equally to all taxpayers, including politicians, according to tax and advisory firm Blick Rothenberg.
Robert Salter, the company’s director, called for greater clarity and consistency in taxing gifts, noting that while media figures and social influencers are taxed on gifts, politicians often receive tax-deductible gifts.
Salter pointed out that gifts to politicians, which are sometimes job-related, are not treated as taxable income by HMRC, although similar gifts are taxable in other sectors. He stressed that despite the complexity of current laws, neither the givers nor the recipients are breaking any laws if the gifts are not declared as taxable income.
Salter believes that applying consistent rules across all industries would simplify the current system, which requires a case-by-case analysis. It was suggested that HMRC should introduce clear and uniform rules, while also considering setting a reasonable limit on the threshold (for example, gifts exceeding £1,000 in a tax year) to prevent small gifts giving rise to tax liabilities.
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