Political update: May 2023
CIOT, ATT and LITRG work with politicians from all parties in pursuit of better informed tax policymaking.
CIOT, ATT and LITRG technical teams have been busy producing briefings and representations for MPs scrutinising the current Finance Bill. These included briefings on R&D credits reforms, the introduction of full expensing, the multinational and domestic top-up taxes (implementing OECD Pillar 2) and the net pay pensions top-up, ahead of these clauses being discussed at the Bill’s Committee of Whole House on 18 and 19 April.
At the time of writing, further briefings are being prepared, including on abolition of the Office of Tax Simplification, for the Public Bill Committee, which commenced on 25 April. The briefings and updates on the Bill’s proceedings can be read on the CIOT blog (tax.org.uk/blog/1).
Ahead of the Bill’s second reading, a team from CIOT, ATT and LITRG arranged a briefing in Parliament to talk through key measures in the Bill with members of Labour’s Treasury Team, including Shadow Financial Secretary James Murray MP. This included identifying areas where we have concerns, as well as answering the questions of the MPs and advisers.
Two recent reports from the Commons Public Accounts Committee have drawn on evidence from CIOT in reaching their conclusions. A report on the digital services tax, published on 5 April, had the Institute’s concern that the ‘blunt instrument’ tax may be in place much longer than envisioned as one of its main observations. A report on the Covid economic support schemes, published on 8 March, drew attention to the Institute’s warning that the application process for the self-employment income support scheme (SEISS) may have had the unintended effect of encouraging ineligible claims.