Budget 2011: view from the CIOT

While fuel duty income tax and corporation tax ‘giveaways’ took the Budget headlines the CIOT’s attention was drawn to a range of reforms and proposals which could if they fulfil their potential make our tax system simpler more certain and more transparent.

The Institute has long pressed the case for simplification of the tax system and I was delighted to see the Chancellor taking some important steps forward building on the Office of Tax Simplification’s recent reports. I congratulate the government on finally grasping the nettle of integrating the operation of NICs and income tax. There are real administrative savings in harmonising the way the two taxes are run. The commitments to review small business taxation and to eliminate 43 reliefs are also welcome. By the OTS’s calculations that still leaves another 999 reliefs in place so there is no room for complacency...