TOLLEY's TAX GUIDE 2005-06

Reviewed by Mark McLaughlin CTA (Fellow) ATT TEP, Editor of TaxationWeb

Tax is a huge and ever-expanding subject! Someone indicated to me the other day that the present Chancellor of the Exchequer has doubled the volume of tax legislation during his term of office. If that statement is true, it is both staggering and rather worrying! For tax advisers (let alone taxpayers!), keeping up-to-date with new developments is a very difficult task. Entire books are often devoted to specific aspects of tax, covering only relatively small areas.

Writing a book covering all aspects of tax must be difficult enough. However, making the book practical and easy to understand as well requires immense skill. That is the main reason why I consider 'Tolley's Tax Guide' to be the best book of its kind that I have ever encountered. For a tax book, it is very easy to read and comprehend in my opinion. The authors of this book have a rare and exceptional talent for translating technical and complicated tax legislation into straightforward, everyday language. The book is now in its 24th Edition, so clearly I am not alone in my appreciation of it!

The first question that the reader of this review will probably ask is: 'Is the book suitable for me?' In the case of Tolley's Tax Guide, the answer is: 'Yes, probably'. The publishers' marketing material states that '...the Guide is the No. 1 reference work for tax professionals and self-assessment individuals alike'. In fact, this book should be helpful to the vast majority seeking to increase their knowledge and understanding of UK tax, from tax advisers to tax students, from financial directors to taxpayers and those wishing to learn more about the UK tax system.

Contents

This hardback publication is nearly 850 pages long, comprising 45 Chapters divided into the following sections: Introduction, Outline of the UK tax system, Employment, Pensions, Trades professions and vocations, Land and buildings, Tax and the family, Choosing your investment, and Miscellaneous.

Worked examples form a significant proportion of the Guide In fact, there are over 140 examples throughout the book. In addition, the Guide contains various lists and tables including a table of tax rates and allowances. All of these features greatly assist in the comprehension of the various subjects covered. There is also a brief summary at the start of the book of the main tax changes introduced by the two Finance Acts 2005. The early chapters of the book provide a brief introduction to the UK tax system, and outline the general principles of income tax (including tax credits), corporation tax, capital gains tax, inheritance tax, stamp duty and VAT.

A further feature of Tolley's Tax Guide that many tax advisers and taxpayers will find useful is that chapters are devoted to particular groups of taxpayers. For example, there are chapters on 'Directors of small and family companies' and 'Especially for the senior citizen'. There are also chapters aimed at employees, the self-employed and investors. The Guide also devotes chapters to specific tax subject areas, many of which are topical or of widespread interest in general. For example, there are chapters on 'Your family home', 'Making a will and post-death planning', 'Transfer of business to limited company' and 'Selling the family company'. These are all substantial subjects in their own right, upon which entire books have been written. Consequently, the Guide should not be seen as a definitive solution to a particular tax matter. However, the authors skilfully set out the main issues in a manner that is easy to understand. The Guide is therefore a very useful starting point when researching a subject or area of tax. References are invariably made to the tax legislation to assist in this regard, which will be helpful to tax advisers in particular.

A further helpful feature at the end of many chapters of the book is a summary section entitled 'Tax points', containing brief bullet points on the main tax considerations of the topic covered in the relevant chapter. If the authors' deliberately intention was to produce a clear, succinct summary of the subjects covered in a style and format that can be quickly read and digested, then in my view they have achieved that objective successfully, and in a very accomplished fashion

Cost

Tolleys Tax Guide costs £54.95. Individual taxpayers in particular may not be accustomed to paying that much money for a book, but in terms of professional publications this is not expensive. The information contained in the book could potentially save more than the cost of the book, depending on individual circumstances. Professionals who advise on tax issues should also find that this book represents excellent value for money.

The Verdict

As mentioned at the start of this review, tax is a vast subject. Tolley's Tax Guide attempts to cover the entire subject, concentrating on the key areas within it for most taxpayers and their advisers (there is even a Chapter on 'Council tax and business rates', subjects which would not immediately spring to mind in a book on tax!). However, in my opinion the authors have done an outstanding job in capturing the basic principles and key points, and explaining them very well in a readable, easy-to-follow format. The guide should not been seen as a potential solution to specific tax problems (personal circumstances differ from case to case), but more as a means of obtaining an overview on particular tax subjects. The Guide should also make a good starting point when researching answers to tax issues. In addition to tax professionals and self-assessment individuals, I would include students as potential readers, and taxpayers in general who wish to take greater control over their tax affairs from a greater understanding of the subject. In conclusion, in my view this is an excellent tax book, which comes highly recommended.

To Order

To order Tolley's Tax Guide 2005-06, click here.
The book comes with a 30-day money-back guarantee.

Mark McLaughlin
TaxationWeb
September 2005