The Chartered Institute of Taxation's (CIOT) has criticised last week’s Budget for the number of tax measures announced as ‘done deals’ without having been consulted on, and for excessive ‘tinkering’.

In an assessment made to MPs on the Treasury Committed, the CIOT says:


“Budget 2018 contains fewer tax changes than in most recent Budgets; perhaps a consequence of its timing and the status of our negotiations on leaving the EU.

“Disappointingly, there continue to be measures being announced as ‘done deals’ or for immediate implementation, with either no or inadequate consultation (for example, the changes to private residence relief and enterprise reliefs such as the Structures and Buildings Allowance (SBA)). This Budget demonstrates on its own terms the detrimental consequences such an approach can have by appearing to correct previous surprise announcements (for example, restricting Employment Allowance or not pursuing the changes to Rent a Room relief).

"A number of measures also have immediate effect. Whilst this is normally understandable when they are for the prevention of avoidance, the SBA is not such a measure, and the fact that it also has not been consulted upon may lead to confusion as to its scope and application.

“There is also a lot of ‘tinkering’… We recognise that some tinkering is necessary to ensure that the measure operates as intended; but would tinkering be necessary if there been adequate consultation and a higher standard of legislative drafting in the first place?”

The CIOT’s analysis includes a ‘traffic light’ assessment of the main Budget measures. The Institute is most positive about the proposals to put voluntary tax returns on a statutory footing, the withdrawal of the shared occupancy test for rent-a-room relief and Universal Credit measures. The most negative reaction is for the capital allowances special rate reduction, the Digital Services Tax and the deferral of reform of HMRC’s penalties regime.


Budget Summary for individuals and business

Finance Act 2018 and rolling tax planner for 2018/19