Taxation law rewrite takes another step forward

Date: 4th March 2009

The modernisation of UK taxation law has reached a milestone with the drafting of two new bills.

Under the Tax Law Rewrite project, corporation and international taxation legislation could face major changes - affecting small businesses and the self-employed.

The rewrite of the corporation taxation bill will include new provisions on gifts to charities, losses and various forms of relief.

Stephen Timms, financial secretary for the Treasury, said: "Thanks to the close co-operating between the project team, tax practitioners, the legal profession and business representatives the project has once again rewritten tax legislation in a clearer and more accessible format."

Key features of the project include a "more logical structure" for taxation law, the use of simpler language, consultation with interested parties and no alteration of primary taxation policies.

Small businesses concerned over how the changes could affect them should consider consulting a local accountant.

Last month, HM Revenue and Customs published a draft charter outlining the rights of individuals and businesses when dealing with the government department.