TaxPersonal Tax‘Lunatic’ term could be removed from tax law

'Lunatic' term could be removed from tax law

Definition of incapacitated person for tax purposes to be revised

THE DEFINITION of an ‘incapacitated person’ could be revised, putting the future of terms enshrined in law such as ‘lunatic’ and ‘idiot’ in doubt.

The HM Revenue & Customs consultation seeks to modernise the definition of ‘incapacitated person’ for direct tax purposes and is seeking comment for an alternative approach.

Those covered by the definition do not need to tell HMRC about their tax affairs or pay tax on their earnings; those duties are transferred to a parent, guardian or equivalent.

“We wish to move away from terms that carry the stigma attached to the words used in the current definition,” states HMRC in its consultation.

The consultation ends on 16 August.

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