Tax Policy Making and Draft Finance Bill 2011
(Limited Text - Ministerial Extracts only)
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The Exchequer Secretary to the Treasury (Mr David Gauke)
At the June Budget, the Government set out their commitment to build a new approach to tax policy making—one founded on predictability, stability and simplicity—with consultation on policy and scrutiny of legislation as the cornerstones.
Today the Government are publishing their response to the consultation “Tax policy making: a new approach”, which sets a number of concrete improvements to the way in which tax policy is developed, communicated and legislated. We have already taken steps to improve predictability of the tax system, for example through the “Corporate Tax Road Map” published on 29 November 2009.
We are also making further progress towards our objectives with the publication, in draft, of the majority of 2011 Finance Bill clauses. This practice will become an established feature in the tax policy making cycle. Confirming the majority of intended tax changes at least three months ahead of publication of the Bill supports predictability in the tax system and provides an opportunity for draft legislation to be properly scrutinised.
The draft clauses will be open to consultation until 9 February. HMRC will host an open day for tax practitioners and tax managers on 24 January 2011. The Finance Bill will be published in full on 31 March 2011.
In response to feedback received through the consultation on tax policy making, we have also published a supporting document that provides an overview of the draft clauses published today. This sets out, for each draft clause, the proposed change, why we seek the change and what we expect the impacts to be.
Alongside the relevant draft clauses, the Government are also publishing:
a response to the consultation on furnished holiday lettings;
a response to the consultation on pensions annuitisation;
a response to the consultation on taxation of gaming machines
a response to the consultation on the simplification of corporate capital gains;
a response to consultation on modernisation of investment trust companies; and
two consultations relating to HMRC’s powers review.
Draft clauses, the Government’s response to the consultation on tax policy making and other documents published today can be found on HM Treasury and HM Revenue and Customs websites.
The Government have also tabled two separate written statements today in relation to the following clauses:
Disguised remuneration; and
Restricting pensions tax relief.