Budget 2011: view from the Law Society's Tax Law Committee

The government’s new approach to making tax policy inevitably leads to an extended timetable for the introduction of new tax laws.

That is not necessarily a bad thing. It certainly produces a greater opportunity for consultation. It does however mean that away from the headline-grabbing the Budget is packed with announcements confirming the introduction of measures that have previously been announced or proclaiming periods of consultation for new measures which may or may not form part of future Finance Bills. Here are a few examples of both.

The consultation process on the taxation of foreign profits has been running for some time. It produced some quick wins – a broad exemption system for dividends – but not without collateral damage to the taxation of distributions and the nightmare of the debt cap. Since then progress has been painfully slow. This Budget includes confirmation that the...