The Financial Secretary to the Treasury, the Right Hon Stephen Timms MP said:
“The Tax Law Rewrite project has played a key role in modernising our tax legislation and its work has rightly been widely praised. The mainstream direct tax legislation is now far more accessible and easier to apply than the legislation that went before and when the project’s next two Bills are enacted, the time will be right to bring this work to an end.
This has proved to be a major task which would not have been possible without the huge contribution and dedication of everyone involved in the project. Many tax professionals in the private sector have given their time and expertise in reviewing and improving the new provisions during their development. Their input, and the dedication and guidance of the project’s Steering and Consultative Committees, have been vital in achieving the excellent quality of the rewritten legislation.
With the completion of the project’s work, legislation for the mainstream direct taxes will now be much easier for users to navigate and understand. This is a very significant achievement and I am grateful for the contribution of everyone involved in it.”
With the expected enactment in spring 2010 of a second Corporation Tax Bill and the Taxation (International and Other Provisions) Bill, which rewrites provisions that deal mainly with international taxation issues, the Tax Law Rewrite project will have rewritten the most frequently used legislation for the mainstream direct taxes.
Work currently on hand will be completed by the end of 2009/10, after which only minor amendments to existing rewritten legislation will be undertaken.
Notes to editors
1. Since it was set up in 1996 on the basis of full consultation, the project has produced the following rewritten legislation:
· The Capital Allowances Act 2001
· The Income Tax (Earnings and Pensions) Act 2003
· The Income Tax (Trading and Other Income) Act 2005
· The Income Tax Act 2007
· The Corporation Tax Act 2009
· The PAYE Regulations
2. The key features of the project are:
· clearer, more logical structure for tax legislation
· use of plain language and other reader aids
· no alteration of main tax policies
· occasionally, some very minor agreed policy changes to improve the legislation
· full consultation with interested parties
· streamlined Parliamentary procedures for enacting “rewrite Bills”.
3. A high level Steering Committee, chaired by The Rt Hon The Lord Newton of Braintree OBE DL, oversees the project. A Consultative Committee, consisting of representative bodies and other interested parties, also meets on a regular basis to consider issues and the draft legislation in more detail.
4. Earlier this year HMRC consulted the representative bodies and firms which have supported and contributed to the rewrite work about the future of the project. The decision to close the project once the work on hand has been completed reflects the views of the majority of those responding.
5. The full text of a Written Ministerial Statement issued today can be found on the UK Parliament website at www.parliament.uk
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