UK Income Tax Bill Published

by Jason Gorringe, Tax-News.com, London

11 December 2006

The UK's new Income Tax Bill, introduced into Parliament by Financial Secretary to the Treasury, John Healey MP, was published on Friday.

It is the fourth Bill of the Tax Law Rewrite project, which aims to rewrite UK primary direct tax legislation so that is clearer and easier to use.

The Bill covers:

• Basic provisions about the charge to income tax, income tax rates, the calculation of income tax liability, and personal reliefs;
• Various specific reliefs, including relief for losses, the enterprise investment scheme, venture capital trusts, community investment tax relief, interest paid, gift aid and gifts of assets to charities;
• Specific rules about trusts, deduction of tax at source, manufactured payments and repos, and tax avoidance; and
• General income tax definitions.

Announcing the Bill's introduction, Mr Healey explained that:

"The Tax Law Rewrite project has made tax legislation significantly easier to understand. As we complete the fourth Bill in the project, on income tax, I would like to thank everyone who has given their time and expertise in commenting on the provisions of this Bill during consultation, and to the members of the Tax Law Rewrite project's Steering and Consultative Committees, for their invaluable help in making this possible."

Once enacted, the new legislation will complete the project's work on income tax.

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