Certainty is greatly desired by business and retrospective legislation goes against that principle. Most retrospective legislation in the UK is better termed retroactive as any legislation that takes effect before the relevant Finance Bill receives royal assent is retrospective. True retrospective legislation is generally governed by the 1978 ‘Rees Rules’ and 2011 Protocol on unscheduled announcements of changes in tax law which require a warning to have been given and the legislation to only go back to the warning. Both of these can be rewritten by a future Parliament. Retrospective legislation can be challenged in court, but has a limited chance of success. However, retrospective legislation can also be relieving and when this happens, is to be welcomed.
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Certainty is greatly desired by business and retrospective legislation goes against that principle. Most retrospective legislation in the UK is better termed retroactive as any legislation that takes effect before the relevant Finance Bill receives royal assent is retrospective. True retrospective legislation is generally governed by the 1978 ‘Rees Rules’ and 2011 Protocol on unscheduled announcements of changes in tax law which require a warning to have been given and the legislation to only go back to the warning. Both of these can be rewritten by a future Parliament. Retrospective legislation can be challenged in court, but has a limited chance of success. However, retrospective legislation can also be relieving and when this happens, is to be welcomed.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
