The House of Lords Economic Affairs Committee has appointed a Finance Bill Sub-Committee (FBSC) to inquire into the draft Finance Bill 2016 which was published on 9 December 2015. A call for evidence issued today has set a deadline for submissions of Friday 29 January 2016. The FBSC will publish its report prior to the Budget in March 2016.
This year the FBSC concentrates its inquiry on whether the measures proposed in the draft Bill contribute to the simplification of the personal tax system and their impact on the compliance burdens of individual taxpayers. The FBSC invites evidence on these issues with particular reference to the following three topics:
Clauses (1)-(4): Proposed changes to the taxation of savings and dividends
These clauses introduce a new Personal Savings Allowance and end the deduction of tax from interest at source. In relation to dividends the measure include the abolition of dividend tax credits and the introduction of new dividend tax rates. The FBSC invites evidence on the specifics of these draft provisions and their potential impact.
Clause (71): Simple Assessments
This clause introduces a new power allowing HMRC to assess an individual’s tax liability, without a tax return being submitted, using information it already holds (whether received from the individual or a third party). The FBSC invites evidence on the proposed administration of simple assessments and their impact on tax payers.
Clauses (83)-(88): Office of Tax Simplification
The Bill establishes a permanent Office of Tax Simplification and defines its functions in statute. The FBSC invites evidence on the impact of these clauses and the extent to which they are likely to promote the future development of a simple, transparent personal tax system.