Gavin Hinks, Accountancy Age, Wednesday 19 May 2010 at 17:32:00

CIoT president stresses need for consultation on upcoming tax policy


The development of tax law in the UK is "deeply flawed", according to the president of the Chartered Institute of Taxation in an open letter to the new new chancellor George Osborne.

Vincent Oratore writes: "The CIoT believes that the way tax law is developed and effected in the UK is deeply flawed. The current parliamentary process has major shortcomings - a lack of expert scrutiny and a shortage of time among them."

The letter highlights four key areas Oratore believes need tackling - the tax system lacks a proper design; the system is too complex and is in need of a dedicated body to aid simplification;it needs an an improved law making process and their should be a focus on removing "uncertainty" from the way taxes are managed by the government.

Oratore adds: "Overriding all these matters is consultation: our belief that the tax system in the UK is best developed as a partnership between all those affected by it."

The letter comes as the chancellor today became embroiled in a row with members of his own party over his intentions for capital gains tax. As part of the coalition deal with the Lib Dems the Tories agreed to raise CGT rates on non-business assets. It is thought these rises might go as high as the income tax rates - 40 or 50%.

A group of Tory MPs and Peers today said they would oppose the changes because it would damage entrepreneurs.

Read more:

Tories rebels and CGT