Taxation – Tories identify 23 tax rates

Taxation - Tories identify 23 tax rates

Chancellor Gordon Brown has been accused of complicating the tax regime to the extent that ‘only accountants stand to benefit’.

Tory MP Tim Loughton, who is a director of an asset management company, said accountants would have ‘a field day’ because of complications in income and capital gains taxes resulting from Budget changes.

Loughton, MP for East Worthing and Shoreham, said proposed changes to CGT ‘represent a minefield of confusion and complication which can be welcomed only by the accountancy profession.

He added: ‘By my calculations, before the Budget we already faced the prospect of five different income tax rates: 20%, 23% and 40% for most incomes, and 10% and 32.5% for dividends.

‘If that were not complex enough, under the new proposals for CGT tapering there will be fewer than 18 new different rates for CGT for private individuals on non-business assets alone. That makes 23 different rates of tax for dividends and CGT alone – that’s hardly “keeping it simple”!’

Nigel Lawson started the ‘simplification’ of the tax regime when he was chancellor, although Kenneth Clarke split CGT relief into two separate rates, which was seen by some to make the system more complicated. But Loughton said Brown’s changes were inexcusably complicated.

Loughton said: ‘I know of no other country with such a complicated system. I cannot believe it will survive the full rigours of the Finance Bill Standing Committee.’

Related Articles

Supreme Court rules against Pimlico Plumbers in landmark employment case

Legal Supreme Court rules against Pimlico Plumbers in landmark employment case

1m Alia Shoaib, Reporter
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

3m Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

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

4m 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?

6m 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

7m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

8m 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

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

9m Emma Rawson, ATT Technical Officer