Could the Chancellor’s Proposals on Capital Gains Tax Flout European Law, asks ICAS?

European law asserts that changes to tax legislation must provide taxpayers a reasonable period of time to assert their right to claim reliefs. That right will be denied under the new rules on Capital Gains Tax proposed by the Chancellor, Alistair Darling.  Previous legal decisions indicate that a transitional period of 90 days, more than the time period proposed in the recent change to Capital Gains Tax, is insufficient, says The Institute of Chartered Accountants of Scotland (ICAS).

At the Pre Budget Review (PBR) in October 2007, the Chancellor announced his intention to simplify capital gains.  He proposed to abolish…

CIOT: Consultation should always precede change

The CGT changes announced today represent a response to the huge amount of pressure that followed the surprise announcements on capital gains tax in the PBR. The Chartered Institute of Taxation (CIOT) believes that the best way to achieve a better and simpler tax system is consultation before and at every stage of intended change.

Rob Ellerby CIOT President, says: “If there is one lesson to come out of the CGT saga, it is the importance of consultation with those affected. In taxation, the only time that change should come before consultation is in the dictionary.”

ICAS Calls on Chancellor to Remove Damaging Uncertainties Surrounding Capital Gains Tax

Uncertainty about the rules for capital gains tax is damaging the UK economy and discouraging enterprise, says The Institute of Chartered Accountants of Scotland (ICAS) in a letter today to the Chancellor of the Exchequer.

ICAS welcomes moves to simplify taxes, and supports in principle the sweeping simplification of capital gains tax announced in October.  However, aspects of the changes are seen as retrospective in nature and therefore unfair in their application to gains which have accumulated over a long period and would qualify for business taper relief if realised by 5 April 2008 but not thereafter.

Ian Dewar, Convener…

Taxpayers’ Charter - An important step forward

The announcement today by Jane Kennedy MP, Financial Secretary to the Treasury, that HM Revenue & Customs (HMRC) will be “...taking forward work with interested parties to develop a Taxpayers’ Charter” has been warmly welcomed by the Chartered Institute of Taxation (CIOT).

Rob Ellerby, CIOT President, said: “The CIOT has long argued that a Taxpayers’ Charter is necessary in the UK. With the ongoing wide-ranging review and development of HMRC’s powers, a charter which collates safeguards is a key balance in the tax system. Today’s announcement is an important and welcome acknowledgement of what we have been campaigning…