Chas Roy-Chowdhury, ACCA’s head of taxation, says: 'The Treasury Select Committee’s report raises areas of concern, and also outlines recommendations for future action. Over the last month, ACCA has been concerned about the unintended consequences that have arisen as a result of the Budget – from uncertainty about retrospective tax on stamp duty to the uncertainties of the impact of reducing the 50p tax rate to 45p.
'We would welcome a consultation on retrospective tax policy changes, and also hope that the Government will publish the impact of the 5p cut in the top rate of tax.'
However, ACCA has welcomed the introduction of personal tax statements as a means of offering personal taxpayers clarity about their tax payments and arrangements. Chas Roy-Chowdhury adds: 'A good tax system should be transparent and understandable and tax statements tick both boxes in this respect. But as the Treasury Select Committee says, these need to be well designed with the taxpayer in mind.
'We have seen in this Budget more complexity engineered into the tax system, from the taxation of child benefit, to age allowance curtailment, to the stamp duty anti-avoidance measures.
'We are concerned these complexities have brought about confusion and misunderstandings. The UK’s tax system is complicated, and we know that the Treasury Select Committee is working to shine a much needed spotlight onto issues that are confusing. The UK’s tax system needs to be fair, transparent, and accountable. We consider this Budget as scoring low in terms of taking forward the simplification agenda.'