HM REVENUE AND
CUSTOMS News Release (Ref:NAT 20/09) issued by COI News Distribution
Service. 3 March 2009
Modernising the
UK's direct tax law took another step forward today, as two
new draft bills rewriting corporation tax and international tax
legislation were published by the Tax Law Rewrite project.
Financial Secretary to the Treasury, Stephen Timms MP, said:
"These two Bills will complete the task of rewriting the
majority of direct tax legislation for individuals and businesses
that started in 1996.
Thanks to the close co-operation between the project team, tax
practitioners, the legal profession and business representatives
the project has once again rewritten tax legislation in a clearer
and more accessible format."
The Bills rewrite the law without changing its general effect and
have wide support amongst the tax community. Key features are:
* the Corporation Tax Bill (the second of two dealing with
corporation tax) will substantially complete the rewrite of the
corporation tax code. It includes provisions about losses and
gifts to charities, various reliefs such as group relief,
distributions, particular types of companies and activities,
avoidance, and definitions;
* The Taxation (International and Other Provisions) Bill includes
provisions about double taxation relief, transfer pricing, advance
pricing agreements and tax arbitrage. It also relocates and where
appropriate rewrites some provisions which would otherwise have
been left unhelpfully in the Income and Corporation Taxes Act or
one of the Finance Acts. Notes for editors
1. The project was established in 1996 on the basis of full
consultation. The project's first four Acts, the Capital
Allowances Act 2001, the Income Tax (Earnings and Pensions) Act
2003, the Income Tax (Trading and Other Income) Act 2005 and the
Income Tax Act 2007 have all been welcomed by users as a
considerable improvement on the previous legislation. The project
has also rewritten the PAYE Regulations in response to requests
from users.
2. The key features of the project are:
* clearer, more logical structure for tax legislation
* use
of plain language and other reader aids
* no alteration of
main tax policies
* (possibly) some minor policy changes to
improve the legislation
* full consultation with interested
parties
* streamlined Parliamentary procedures for enacting
"rewrite Bills".
3. A high level Steering Committee, chaired by The Rt Hon The
Lord Newton of Braintree OBE DL, oversees the project. A
Consultative Committee, consisting of representative bodies and
other interested parties, also meets on a regular basis to
consider issues and the draft legislation in more detail.
4. The project is currently consulting informally a number of
representatives from accountancy, legal and business organisations
about the support and scope for future rewrite work.
5. Comments on the draft Bills should be sent by 29 May to Jackie
Bartlett, Tax Law Rewrite Project, HM Revenue & Customs, 8th
Floor Bush House, South West Wing, Strand, London, WC2B 4RD;
e-mail: jackie.bartlett@hmrc.gsi.gov.uk Tel: 020 7438 7606.
6. Copies of the draft Bills, like all the Tax Law Rewrite
project publications, can be obtained free of charge from Jackie
Bartlett, (address above) or are also available on the Internet at
http://www.hmrc.gov.uk/rewrite
7. HMRC has also published today consultation stage Impact
Assessments (IAs) on the costs and benefits arising from the new
rewrite Bills and would welcome any comments. Copies of the IAs
may be obtained from Jackie Bartlett, (address above) or are also
on the Internet at http://www.hmrc.gov.uk/rewrite
Issued by HM Revenue & Customs Press Office
Press enquiries only please contact:
Helen Jones
Tel: 020
7147 2328
E-mail: helen.a.jones@hmrc.gsi.gov.uk
Website http://www.hmrc.gov.uk