How To Use This Document
This document is in three parts.
Part 1 summarises the background to the Tax Law Rewrite project as a whole.
Part 2 describes our approach to the work.
Part 3 is the major part of the document. It contains the first batch of rewritten legislation about the income tax treatment of the savings and investment income of individuals, together with a detailed commentary. We invite comments on any of this draft legislation, and highlight some questions on which we particularly seek views.
Proposed rewrite changes are summarised on page 16. These are minor changes which, if agreed, will simplify the legislation still further. They fall into four main types:
Comments on any of these are welcome.
Status of this document
This is the first of two Exposure Drafts on the income tax treatment of the savings and investment income of individuals. We fully expect to make changes to the clauses in the light of this consultation and our further work in this area. Some possible changes are already discussed in the commentary. Others may be needed as a result of future work on other areas, or as a result of changes in the law before enactment of the relevant rewrite Bill. Our approach is to publish our work for comment at an early stage rather than to put forward what we might confidently expect to be the finished product.
We are rewriting the law as it currently stands. Changes to the law, other than minor ones in the interests of simplification, will continue to be dealt with through the Budget and Finance Bill process. The presence or absence of provisions in this rewritten legislation does not indicate any future change in tax policy.
References are to the Income and Corporation Taxes Act 1988 (ICTA) unless otherwise stated.