ICAS Calls For Amendments To Rushed UK Finance Bill

by Robert Lee, Tax-News.com, London

21 April 2005

The Institute of Chartered Accountants of Scotland (ICAS) has called for changes to the Finance Act 2005 within days of its receiving Royal Assent.

The 212-page statute was rushed through Parliament on the announcement of the General Election. It contains not only essential revenue-raising powers but also a number of other measures that apparently secured all-party support.

One of these is a new regime, back-dated to 6 April 2004, intended to simplify the tax treatment of trusts with vulnerable beneficiaries.

“We can understand why these measures were included in the Finance Act, since no political party would wish to be seen stalling a measure purporting to help vulnerable beneficiaries. However, it is asking for trouble to enact substantial volumes of complex legislation without any opportunity for Parliamentary debate," stated Colin Lamb, Convener of the ICAS Capital Taxes Sub-Committee.

"This new tax regime for certain trusts appears to discriminate against Scottish taxpayers by failing to recognise certain Scots Law provisions relating to trusts and intestacies and by ignoring the existence of free personal care in Scotland. Across the board the regime doesn’t seem to offer any administrative savings," he added.

The Institute has submitted representations to the Inland Revenue, calling for 13 changes to the new provisions and seeking clarification on 19 other technical points.

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