Treasury consults on raft of tax reforms

The Treasury has launched a raft of nine tax consultations including one addressing pension tax relief and inheritance tax (IHT).

Exchequer secretary to the Treasury, David Gauke has published nine papers on:

• PAYE reform
• Furnished holiday lettings
• Pensions tax relief
• Associated company rules
• Disclosure of IHT avoidance
• Foreign branch taxation
• Controlled foreign company interim improvements
• Modernisation of investment trust company rules
• National minimum wage regulations

Gauke said scrutiny of tax processes would be a policy ‘cornerstone’.

‘We want to make the tax system simpler and work better for the taxpayer. By reducing burdens, making the right choices and involving taxpayers, we are sending a very clear signal that Britain is open for business,' he said.

‘That is why consultation and scrutiny of our tax policies will be the cornerstone of our tax policymaking process.’

The paper on pensions tax relief proposes a lower annual allowance from £255,000 to a figure between £30,000 and £45,0000 and proposes a review of how defined benefit scheme deemed benefits are calculated.