UK GOVERNMENT: Inland Revenue making tax law clearer.

M2 PRESSWIRE-24 March 1999-UK GOVERNMENT: Inland Revenue making tax law clearer (C)1994-99 M2 COMMUNICATIONS LTD

RDATE:230399

The Tax Law Rewrite project, which aims to make tax law clearer and easier to use, has today published its latest Exposure Draft.

In written answer to a Parliamentary Question, the Paymaster General, Dawn Primarolo said:

"I am pleased to announce that the Tax Law Rewrite project continues to make very good progress. The Inland Revenue have today published the project's fourth Exposure Draft, which contains draft clauses on the trading income of individuals.

This latest publication includes rewritten legislation covering the rules for calculating the profits of a trade, the basis period rules and the rules on farming. I would strongly encourage anyone with an interest in these areas to participate fully in the consultation process, which is key to the success of the project."

DETAILS

1. The Tax Law Rewrite project aims to rewrite the UK's primary direct tax legislation so that it is clearer and easier to use, but without changing its general effect.

The project commands the support of all parts of the tax community.

2. The key points of the project are:

use of plain language and other reader aids;

clearer, more logical structure for tax legislation;

no alteration of main tax policies (but will not prevent policy simplification);

(possibly) some minor policy changes, where these enable greater simplification;

full consultation with interested parties throughout the life of the project; and

new streamlined procedures for enactment of `rewrite bills'.

NOTES FOR EDITORS

1. The project was established in 1996 on the basis of full consultation. Since then, three Exposure Drafts and two Technical Discussion Documents have been published. The project is currently rewriting three areas of income tax - trading income, savings and investment income and employment income - together with the capital allowances provisions. The first rewrite Bill, on capital allowances, will be ready next year.

2. A high-level Steering Committee was set up to oversee the project. Chaired by The Rt Hon The Lord Howe of Aberavon CH, QC it has now held 14 meetings, the first being held on 27 February 1997. A Consultative Committee of representative bodies and other interested parties also meets every month to consider issues and clauses in more detail.

3. Copies of "Trading Income of Individuals: Part 2" can be obtained free of charge from the Inland Revenue Information Centre, Bush House, South West Wing, Strand, London WC2B 4RD.

4. Copies are also available on the Internet at the Inland Revenue home page, the address of which is given below.

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