OTS to review pension and share scheme tax systems

THE SIMPLIFICATION of the tax system for pensioners and share schemes will be the next areas of review for the Office of Tax Simplification, Accountancy Age can reveal.

The OTC will next week send its reply to Exchequer secretary to the Treasury David Gauke to confirm its studies for the coming year. Tax director John Whiting (pictured) and chair Michael Jack have pinpointed pensions and share schemes as the two areas they feel will benefit most from simplification. It will also focus on simplification of administration for small businesses, as Gauke requested in a letter to the OTS.

The review should “examine closely small businesses’ experience of tax administration and their contact with HMRC at key stages of their annual cycle”, Gauke wrote last month. “I would also like it to give specific consideration of the issues involved in starting and growing a new business.”

The OTS will report on these reviews before the 2012 Budget, he added.

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