Vincent Oratore, President of the CIOT, said:
“We welcome the new Government’s commitment to meaningful consultation on tax issues. This is more evidence of the willingness of the administration to listen to the concerns and suggestions of the tax profession and work with us to produce a more efficient tax system.
“The Government’s objective of simplifying the system and reducing burdens on business and individual taxpayers is one that the CIOT shares. The more comprehensible the tax system the more likely it is to command public and business confidence and the more likely taxpayers are to get their tax right.”
Commenting on the discussion paper on pensions tax relief, Vincent Oratore said:
“The review of the proposed changes to pensions tax relief is especially welcome. We all understand that pensions tax relief is going to be curtailed, but that there has to be a simpler way than the complex and costly system previously legislated for. A cut in the annual contribution limit would be a simpler and more pragmatic way forward.”
Commenting on the consultation on Pay As You Earn (PAYE) reform, Vincent Oratore said:
“We welcome the discussion document on ‘Improving the operation of the PAYE system’. It seems to acknowledge many of the problems with the PAYE system that we and other bodies have long highlighted1 and offers the opportunity of real change to a system that, for all its merits, is creaking badly and imposing too many burdens on employers. The prospect of changes that, for example, largely eliminate P45/46 problems, mean tax codes are far more up-to-date and offer the possibility of streamlining tax credits and benefits, is very appealing.
“Although the proposed Centralised Deductions option offers some real opportunities for change, the CIOT will be pressing for adequate safeguards for taxpayers to ensure that they are treated fairly in any new system.”
Commenting on the consultation on Controlled Foreign Company interim improvements, Vincent Oratore said:
“We welcome these interim proposals, but the real test will be whether full reform of CFC rules can be agreed and completed by spring 2012, as the Government intend.
“The objectives for the reformed CFC framework must be greater certainty, lower compliance costs and a more competitive business environment.”
Commenting on the discussion document on taxation of foreign branches of companies, Vincent Oratore said:
“This is a hugely significant area for banks, insurers and energy companies and a welcome step forward in achieving a level playing field for foreign profits. However putting together a tax regime which enables British players in these industries to be competitive internationally and resolves the issues identified will be a big challenge for the Government."
Commenting on the consultation on furnished holiday lettings, Vincent Oratore said:
“The proposal to amend rather than abolish the furnished holiday lettings will be welcomed by many property owners who would be relieved of the need to convince HMRC that they are running a property business. The proposed ending of loss relief will hit some owners, however we appreciate that any rules going forward must be affordable.”
Notes to Editors
