The CIOT has responded to the Treasury Committee’s inquiry into the Autumn Budget and Spending Review 2021 with findings including the following:
After the Spring Budget and Tax Consultation Day, tax policy making has largely ignored the government’s previously announced process, with significant tax announcements (notably the Health and Social Care Levy) made outside of fiscal events, and consultation on substantial changes being condensed into multiple stages over short periods. Where the tax policy making process is not followed, the CIOT notes that the resulting legislation often fails to meet the policy aims and introduces implementation problems.
Basis period reform changes for unincorporated businesses are being rushed to facilitate the introduction of making tax digital for income tax and will create ongoing complexities rather than the desired simplification.
Autumn Budget was ‘light’ on substantial tax change, providing businesses a welcome period of stability and certainty while they emerge from the pandemic.
The Budget omitted any significant climate change commitments such as a consultation on a climate tax road map.
The CIOT has responded to the Treasury Committee’s inquiry into the Autumn Budget and Spending Review 2021 with findings including the following:
After the Spring Budget and Tax Consultation Day, tax policy making has largely ignored the government’s previously announced process, with significant tax announcements (notably the Health and Social Care Levy) made outside of fiscal events, and consultation on substantial changes being condensed into multiple stages over short periods. Where the tax policy making process is not followed, the CIOT notes that the resulting legislation often fails to meet the policy aims and introduces implementation problems.
Basis period reform changes for unincorporated businesses are being rushed to facilitate the introduction of making tax digital for income tax and will create ongoing complexities rather than the desired simplification.
Autumn Budget was ‘light’ on substantial tax change, providing businesses a welcome period of stability and certainty while they emerge from the pandemic.
The Budget omitted any significant climate change commitments such as a consultation on a climate tax road map.
