“Some members expressed disquiet at the way that the PBR CGT changes had been badged as simplification measures. They saw the changes as damaging for business and for the credibility of the simplification and admin burdens agenda ….. this was not simplification from a business perspective … the changes did simplify the tax; but that this was a wider policy change and more than a simplification. “

So now we know – simplifying tax must make it simpler for business.

One other area where the committee seemed to share my concerns is on income shifting: -

“There was still a degree of confusion for smaller businesses around IR35 and a question mark over whether this legislation had achieved what was intended. The planned legislation on income shifting was likely to increase the difficulty.

Any legislation needed to be properly proportionate to the risk at which it was targeted – what is the legislation designed to protect and is it capturing the right people in the right way?”

Sadly the issue was flagged but not resolved.

The future areas where simplification is a target appear to be taxation of benefits in kind and the associated company rules.

This appears to be one to watch – if you want to read more click here.