Cash basis: treatment of capital - CIOT comments

By Technical Team on 01 Mar 2017

We have sent our comments to HMRC on the draft Finance Bill clauses published on 31 January.

In our response, we say that we are not convinced that the policy objective of simplification will necessarily be fulfilled in all cases where a taxpayer is using the cash basis. We are also concerned that the changes could lead to more errors unless HMRC provide very clear and accessible guidance and the Making Tax Digital compliant software contains consistent and accurate nudges and prompts. 

Technical Team