New Management Act

In his Budget on 21 March 2007, the Chancellor announced the Government’s decision not to proceed with proposals for a New Management Act for HMRC at the present time.

Responses to the first draft clauses published in November 2006 were generally positive, but some concerns were raised about the scope of the draft Bill and about parliamentary scrutiny if streamlined procedures were adopted for enactment. And allowing sufficient time to consult on options for HMRC’s Review of Powers, Deterrents and Safeguards meant that many issues would not be concluded until after the proposed Management Act would have been introduced.

The Government remains committed to improving tax administration, to ensure that it is easy for taxpayers both to understand and comply with their tax obligations.

Elements of the work relevant to the Review of Powers, Deterrents and Safeguards will be taken forward in the context of that review. These are likely to include work on record keeping, assessments and time limits.

Once that work has been completed the Government will consider the case for a further consolidation of administrative legislation.

Work developing the legislation and processes needed to allow tax appeals to operate in the framework for government tribunals established by the Tribunals, Courts and Enforcement Bill will continue to be taken forward by HMRC, building on work already in hand.

We are grateful to everyone who participated in the workshops held in early 2006 and who responded to the later consultation. The comments we received were of a very high quality and will inform ongoing work.

Consultation - Archive

The consultation period ended on 20 February 2007.

Workshops - February and March 2006: We held a series of workshops which were designed to allow views of business and their advisors to inform the work at an early stage.

Developing a new management act – November 2006: We published draft clauses covering notification and registration, returns and assessments. The consultation period ended on 20 February 2007.

Contact: Maria Richards