TaxCorporate TaxTax simplification report expected

Tax simplification report expected

The Office of Tax Simplification will issue its report on tax reliefs tomorrow amid calls for a radical overhaul of the UK tax system

ADVISERS HAVE CALLED on the Office of Tax Simplification to overhaul the tax system rather than “tinker round the edges”, in its report on reliefs to be released on Thursday.

The report, which has been overseen by the Chartered Institute of Taxation policy director John Whiting (above), is the first of two, with a report on small and medium businesses due next week. In its interim report last November, the OTS identified a total of 1042 tax reliefs, some of which it would review.

However, Neal Todd, corporate tax partner at law firm Berwin Leighton Paisner, said he was concerned that the report would “tinker around the edges” of the tax system.

“We hope the OTS grab this once in a lifetime opportunity to introduce radical changes that matter to business and other taxpayers,” he said.

However, he added: “I’m not terribly optimistic… I am concerned the OTS has laboured to bring about a mouse.” He said it would be “fine if the UK tax system was functioning well but needed tidying up at the edges”, but he did not believe this to be the case.

Richard Mannion, national head of tax at Smith & Williamson, said areas to look out for in the report included changes to: principal private residence relief, which was used by some MPs to “flip” their principal homes; entrepreneurs relief, which was “written in a weekend, and it shows”; and potentially exempt transfers for inheritance tax (IHT), perhaps lengthening the seven years before death exemption.

He said long shots would include a merging of IHT and corporate gains tax, with the introduction of a single “wealth tax” that would apply to non-residents too and the possible merger of income tax and national insurance.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

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

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter