The government is to bow to advisers' demands and produce a taxpayers' charter.

Financial secretary to the Treasury Jane Kennedy announced the move in parliament this morning.

She said 'HM Revenue & Customs is today announcing that it will begin the process of working with interested parties on the development of a Taxpayers' Charter, which will set out both taxpayer rights and responsibilities in a single accessible document.'

The move was largely unexpected by the tax fraternity after a long period of pressure. The Chartered Institute of Taxation has been one of the most vocal groups pushing for the change.

'We're absolutely delighted with Jane Kennedy's announcement,' said CIOT president Rob Ellerby. 'We believe that a new charter can make a real contribution to improving the relationship between taxpayers, tax advisers and the tax administration.'

Kennedy said that the move would form part of the HMRC powers consultation which is currently being undertaken.

'It's a very welcome surprise,' added past CIOT president John Whiting. 'There's been ongoing work with HMRC's powers and practices, but that has really needed the core balance of a taxpayers' charter.'