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The Low Incomes Tax Reform Group (LITRG) has welcomed HMRC’s new consultation on how best to modernise the language used to define an incapacitated person for direct tax purposes.

A long journey and it’s not over yet

After many years of trying, LITRG has succeeded in getting HMRC to address the question of archaic and offensive language in tax statutes.

But LITRG believes that the consultation which started this week should go wider, as it raises more fundamental questions about how disability is defined for tax purposes.

The consultation

HMRC’s consultation document, ‘Incapacitated person – a modern definition’, seeks to replace language such as “person of unsound mind”, “lunatic”, “idiot” and “insane person” in tax law.

The intent is not to change the tax position of disabled people (although LITRG believes that a number of adjustments are required), but it does give the opportunity to reflect upon the nature and variety of disability, and this in turn will stimulate a debate about how well this is taken into account in tax law.

LITRG raised these issues several years ago and has pressed for change ever since. The group is therefore pleased to see their 2003 report recommendations coming to fruition at last.

Please respond

LITRG is encouraging individuals, agents and disability organisations to respond to the consultation (the deadline is 16 August). But if you lack the time or resources to do so yourself, LITRG is happy to collect your comments and consider them when drafting the group’s own response. Please leave comments by the end of June via the form on the LITRG website.