Register Newsletter
This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Decline Settings Accept
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet
Editorial - Legislation Without Consultation: Why?
21/04/2013, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax Articles - General
1928 views
0
Rate:
Rating: 0/5 from 0 people

Mark McLaughlin thinks that the government should not introduce new legislation without consulting first.

In the last few days or so, I've been having a close look at two new anti-avoidance provisions included in Finance Bill 2013. The first concerns Inheritance Tax and deductions for liabilities. The second deals with close companies and tax charges for loans, advances and other transfers of value to participators.

Both sets of anti-avoidance provisions were announced at Budget 2013. There was no warning or consultation by the Government or HMRC on either of them.

To some extent, I can understand why anti-avoidance measures such as these often tend to be unannounced. A period of warning or consultation could arguably provide an opportunity for those engaging in the type of avoidance being targeted by new legislation to consider ways around it. Having said that, in over 25 years in tax I can't remember a single instance of a close company participator deliberately engaging in the practice commonly known as 'bed and breakfasting', for example. This leads me to wonder whether some of the tax avoidance arrangements that the Governement and HMRC seek to block are more perceived than real.

In my view, proper consultation makes better legislation. If that means that some tax avoiders are likely to act on the 'tip-off' of impending legislation then so be it; or perhaps introduce the measures with effect from the date on which the consultation is announced. Either way, the Government and HMRC can benefit from the valuable and learned input of the professional bodies.     

Best wishes,

Mark McLaughlin 

Managing Editor

About The Author

Mark McLaughlin is a Fellow of the Chartered Institute of Taxation, a Fellow of the Association of Taxation Technicians, and a member of the Society of Trust and Estate Practitioners. From January 1998 until December 2018, Mark was a consultant in his own tax practice, Mark McLaughlin Associates, which provided tax consultancy and support services to professional firms throughout the UK.

He is a member of the Chartered Institute of Taxation’s Capital Gains Tax & Investment Income and Succession Taxes Sub-Committees.

Mark is editor and a co-author of HMRC Investigations Handbook (Bloomsbury Professional).

Mark is Chief Contributor to McLaughlin’s Tax Case Review, a monthly journal published by Tax Insider.

Mark is the Editor of the Core Tax Annuals (Bloomsbury Professional), and is a co-author of the ‘Inheritance Tax’ Annuals (Bloomsbury Professional).

Mark is Editor and a co-author of ‘Tax Planning’ (Bloomsbury Professional).

He is a co-author of ‘Ray & McLaughlin’s Practical IHT Planning’ (Bloomsbury Professional)

Mark is a Consultant Editor with Bloomsbury Professional, and co-author of ‘Incorporating and Disincorporating a Business’.

Mark has also written numerous articles for professional publications, including ‘Taxation’, ‘Tax Adviser’, ‘Tolley’s Practical Tax Newsletter’ and ‘Tax Journal’.

Mark is a Director of Tax Insider, and Editor of Tax Insider, Property Tax Insider and Business Tax Insider, which are monthly publications aimed at providing tax tips and tax saving ideas for taxpayers and professional advisers. He is also Editor of Tax Insider Professional, a monthly publication for professional practitioners.

Mark is also a tax lecturer, and has featured in online tax lectures for Tolley Seminars Online.

Mark co-founded TaxationWeb (www.taxationweb.co.uk) in 2002.

Back to Tax Articles
Comments

Please register or log in to add comments.

There are not comments added