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TAX POLICY ADMINISTRATION


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 staged increases in the basic personal allowance to £10,000 will take many low income people out of tax. But it will not necessarily make them better off, because of the complex interaction of the tax and national insurance with the benefits and tax credits systems.

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

The 2011 Budget was the coalition government’s first opportunity to demonstrate in practice its approach to tax policy announced last year and to signpost the key themes for the rest of this Parliament.
The increased rate of Bank Levy will make foreign banks more inclined to limit or reduce their UK activities and UK banks will continue to review the possibility of re-structuring to exclude non-UK activities from the Levy.

This government is adopting a more strategic approach to avoidance that gets to the root of the problem rather than treating the symptoms. That is the thrust of Tackling Tax Avoidance, released on Budget day.

The Social Security (Contributions) (Re-rating) Order, SI 2011/938, specifies the rates of Class 2 and Class 3 NICs and the amount of earnings below which an earner may be excepted from liability for Class 2 contributio

KPMG’s investment management group announced the appointment of Dan Roman to its hedge funds tax practice. Roman joins as a partner from Ernst & Young.

HMRC published four sets of draft legislation and explanatory notes alongside last week’s Budget:

HMRC have published a reminder that the disclosure regime for avoidance schemes is extended with effect from 6 April to require the disclosure of inheritance tax arrangements that seek to avoid IHT charges associated with transfers of property into trust.

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