TaxPersonal TaxEnglish ICA condemns ‘muddled’ Finance Bill

English ICA condemns 'muddled' Finance Bill

The English ICA this week condemned the latest Finance Bill as a prime example of muddled thinking and bad drafting.

In a submission to chancellor Gordon Brown, the institute’s tax faculty argued that implementation of a number of provisions will make the UK less competitive, particularly in relation to the UK’s G7 partners.

Tax faculty technical manager Francesca Lagerberg said: ‘Not only is this one of the largest Finance Bills ever, it shows little regard for the principles of good taxation. We are keen advocates of properly considered and well structured tax legislation.

‘But much of this Bill is so obscure, or needlessly complex that it’s hard to understand what it is designed to achieve. Moreover there are a number of provisions which will have as damaging effect on UK plc.’

The faculty focused on structural problems with the Bill and associated problems.

It said there was little consultation on the economic impact of certain key measures, such as double tax relief proposals. Budget press releases and technical material were given a political slant which obscured the main issues. Fundamental changes to existing provisions have not prompted a review of the principles underlying those rules.

Additionally, the institute said there was no consistency in the use of traditional and Tax Law Rewrite styles in drafting clauses. There were many examples of badly drafted provisions such as anti-avoidance rules on trusts. It is also wrong for parliament to delegate legislative powers to the revenue authorities which can increase their own rights or expand a tax charge.

Tax Faculty website

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

4w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter