CIOT Suggests Tax Quick Fixes For UK Business

by Caroline Maxwell, Tax-News.com, London

01 November 2001

In a recently released report, the Chartered Institute of Taxation recommended 12 tax 'quick wins', designed to assist UK businesses in the current climate of economic uncertainty.

The CIOT believes that corporate taxation rules are too complex, and that some of the associated administrative burden could be reduced for the country's businesses at little or no cost to the Exchequer.

'We are suggesting a dozen ways to reduce the administrative tax burden on business, whilst ensuring that there is minimal loss of revenue to the Treasury. The recommendations are easy to implement, and any loss of revenue would be offset by savings in administration and collection costs,' said CIOT President, John Whiting, adding: 'This is all about helping businesses- even in just a small way- in the current difficult climate,'

The proposals, which concentrate in the main on easily implemented 'quick fixes', include capital allowances on the full cost of fixtures, double taxation relief measures, the treatment of industrial buildings on the same tax basis as long term plant and machinery, and the removal of the £12,000 limit which penalises the users of many 'ordinary' fleet cars.

However, the Institute also has several longer-term measures in mind, which it believes will reduce the overall tax burden on companies. These include restriction of the imposition of stamp duty to securities and land transfers, and the abolition of the schedular system of corporation tax, (originally introduced in the 19th Century to protect a gentleman's privacy), which would mean that companies would be assessed on a composite profits figure for corporation tax.

Recommended