Trusts clampdown 'most inefficient tax in history'
Chartered Institute of Taxation launches new salvo against trusts changes
The chancellor’s change to the taxation of trusts is ‘the most inefficient
tax change in history,’ according to the Chartered Institute of Taxation.
The move will cost a million families about £250 to change their wills,
according to the institute.
Anne Redston, chair of personal taxes at the Chartered Institute of Taxation,
said: ‘This is arguably the least efficient tax in history. It costs 2 pence to
collect £1 of capital gains tax, 1.34 pence to collect £1 of income tax, and
only a halfpenny to collect £1 of national insurance contributions. But this new
tax, which raises £15m a year, will cost ordinary families £250m.’
The changes, introduced in the Budget, have caused a huge row that will still
not go away.
Despite the announcement of details in the Finance Bill that were billed as a
partial u-turn, there is still widespread anger in the profession and a
perception that problems have not been resolved.