Taxation reform is always a complicated issue for anyone trying to calculate the impact on their personal finances.

It is made even more difficult when the chancellor of HM Treasury decides to make a flood of changes in one day with the chance of more changes to follow.

Already there are 30 or so changes to Britain’s taxation system to be introduced next month, and this year’s Treasury budget is still to be delivered which could give taxpayers more surprises.

The chancellor has already come under fire from the financial sector about the changes to Capital Gains Tax (CGT).

So to minimize the impact the chancellor has decided to a “amend” the CGT reform to reduce the tax burden on entrepreneurs.

Now people have an allowance of £1 million, which is taxed at 10 per cent rather than the proposed flat tax rate of 18 per cent.

Isn’t the goal of most tax reform to simplify tax? I expect the chancellor will have a hard time selling any further reforms that may be dilivered in tomorrow’s budget.

This entry was posted on Tuesday, March 11th, 2008 at 11:55 am and is filed under Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.