Introduction

'Tolley's Taxwise' seems (to me at least) to have been around forever! Longevity is the sign of a good book in my view. In fact, Taxwise I originated more than 30 years ago. When I began specialising in Tax in 1989, this book was a constant companion, and proved to be an invaluable reference guide. Subsequent editions of this publication have therefore graced my tax library ever since.

The original authors of Taxwise I and II (Arnold Homer and Rita Burrows) will be familiar names to many. They are also the authors of the excellent 'Tolley's Tax Guide 2005-06'. In addition, Taxwise II now has as its authors Peter Gravestock, a well-known and well respected figure in the tax world, and Sue Jones of the Low Incomes Tax Reform Group. Peter Gravestock is also an author of Taxwise I, together with John Clube of John Clube & Co Ltd and Keith Gordon, Barrister.

Contents

Taxwise I and II are a two volume set, which can be purchased separately. In addition, there is Tolley's VATwise 2005-06, which is described as a 'companion publication'. The books are softback, with a textbook look and feel. Both publications include tax rates and tables, plus a summary of the Finance Acts 2005 provisions relevant to the particular volume.

Taxwise I covers a wide area, i.e. income tax, tax credits and National Insurance contributions, corporation tax and capital gains tax, and also includes a brief section dealing with stamp taxes. The latter section is very much an overview on stamp duty, stamp duty land tax (SDLT) and stamp duty reserve tax. The SDLT commentary in particular could usefully be expanded upon in later editions, perhaps with some additional sections to include coverage on the potentially tricky subject of SDLT and partnerships. There is also a 'miscellaneous' section dealing with subjects ranging from share incentives to the transfer of a business to a company. 'Miscellaneous' also includes a section on 'General tax planning' which includes an outline of the 'pre-owned assets' regime.

There are no chapters as such, only sections, with 100 subjects being covered in separate sections. For example, the income tax section begins with general principles and personal tax computations, building up to more complicated subjects including lump sum payments on the commencement and termination of employment, employment or self-employment issues including the nature of a trade, and partnerships. There are also separate sections dealing with pensions, one dealing with the pension contributions in 2005/06, and the other highlighting the pensions regime following 'A Day' on 6 April 2006.

Taxwise II covers inheritance tax, the taxation of trusts and the taxation of estates. As with Taxwise I, there are sections for each category as opposed to chapters, with 65 subjects covered in total, 33 for inheritance tax, 8 for estates and 24 for trusts. The inheritance tax section begins with a useful introduction outlining the basic principles, including inheritance tax exempt transfers. The estates category includes a section on 'Pre-death planning' which makes an interesting 'case study'. The trusts category covers a broad scope of subjects, with sections ranging from settlor-interested trusts to trust reporting requirements.

Taxwise I and II are very practical books, in the sense that they are both in a 'Q+A' (ie question and 'model' answer) format, containing numerous illustrations setting out the layout of computations, supported by clear explanatory notes outlining the underlying principles and cross-referencing to the relevant tax legislation, case law etc to enable further research, where appropriate.

Cost

Tolley's Taxwise I 2005-06 costs £61, with Taxwise II 2005-06 costing £55. Perhaps not the cheapest tax publications on the market, but still good value in my view considering the vast amount of useful information crammed into these publications.

The Verdict

Taxwise I and II have a wide potential appeal. They could help professionals and non-professionals alike. They could also benefit taxpayers or tax students. The books are written to a fairly high technical level, yet are relatively easy to follow and comprehend. For a taxpayer who is looking for a solid grounding on the tax system and how it works, 'Tolley's Tax Guide' may perhaps be a good place to start. However, for those requiring a deeper understanding of tax, Taxwise I and II should be a safe bet.

For professionals, Taxwise is a potentially helpful reference source for tax students, and for those exposed to tax issues on a regular basis in tax departments etc, from tax junior to tax manager and possibly above. The book(s) are unlikely to provide a complete answer to the many tax issues covered, but as an initial research point and/or a memory jogger, they should prove very helpful. For non-tax professionals, they should also be a quick and efficient means of keeping up-to-date with legislative changes in particular areas. And for those with an interest or involvement in the practical, computational aspects of tax, these books should prove an invaluable reference source.

The introductory page of both books summarises them accurately and succinctly in my view: 'The book is not an exhaustive work of reference but it shows the treatment of all the points that are most likely to be encountered.' Just as I discovered back in 1989! Both books are professionally written and well presented. They are to be recommended.

To Order

To order Tolley's Taxwise, click here.
Both books come with a 30-day money-back guarantee.

Mark McLaughlin CTA (Fellow) ATT TEP
TaxationWeb
November 2005