TaxPersonal TaxHefty Finance Bill disappoints critics

Hefty Finance Bill disappoints critics

The 2001 Finance Bill runs to more than 290 pages dashing hopes of those who thought it might be a small document given the forthcoming election.

Published on Friday, the Bill is accompanied by explanatory notes numbering at least as many pages of the Bill itself.

‘As usual it’s almost 300 pages even though we already know most of what’s in it,’ said Frank Haskew of the ICAEW’s Tax Faculty.

‘People who thought it would be a small finance bill were living in cloud cuckoo land because that’s not the way it works these days,’ he added.

And the Chartered Institute of Taxation also criticised the Bill, claiming it had failed to simplify the tax system for ordinary taxpayers.

Heather Self, chairman of CIoT’s technical committee said the Bill also did not help remove some of the burdens on business.

‘Policies which are designed with large companies in mind are being imposed on all companies. Small and medium-sized companies do not have the resources to cope,’ said Self.

The Bill includes measures to make minor changes to the All-Employee Share Ownership Plan, a further ammendment to the Capial Allowances Act and legislation to prevent tax avoidance through stock lending schemes aiming to exploit existing anti-avoidance rules.

Also included is the removal of the requirement for companies to deduct tax when they pay interest, royalties, annuities and annual payments to other companies, where the recipient is within the charge to corporation tax on that income.

Links

Further information regarding Clause 83: Exceptions to Section 349 for Payments Between Companies

AccountancyAge.com Budget 2001

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