The UK’s tax system is not fit for the future and something needs to change, says the ICAEW.
To this end it has launched an independent Future of Tax commission, chaired by former treasury minister Mark Hoban. He has been charged with a root-and-branch review of the whole UK tax system.
The two-year initiative, which is being funded by ICAEW, but will sit independently, will report its findings before the next General Election, expected to take place in 2029.
Alan Vallance, Chief Executive of ICAEW, said:“Britain’s distorted and complex tax system will soon become unfit for purpose without radical reform.
“As chartered accountants, we see the damage every day. Successive governments over many decades have made tweaks and ad hoc changes to the tax system. This has resulted in the UK not only having the longest and most complex tax code in the world, but the system being riddled with cliff edges and disincentives that hinder productivity, add unnecessary costs and red tape, and ultimately leave the country worse off.
“That’s why we are launching the Future of Tax Commission. It will carry out a root-and-branch review and set out the direction needed to create a modern tax system fit for the 2030s and beyond.”
Mark Hoban, Chair of the Future of Tax Commission, said: “Decades of piecemeal change have left Britain with a tax system that is too complex, too costly and a barrier to growth. We will examine the system as a whole and identify what is needed to make it work better for businesses, taxpayers and the wider economy.
“We will follow the evidence, confront the trade-offs, and produce a practical roadmap for a simpler, fairer tax system. I look forward to getting started.”
Picture: Mark Hoban (right) with Alan Vallance
