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Cap doesn’t fit

01 May 2012 / Mike Truman
Issue: 4351 / Categories: Comment & Analysis
MIKE TRUMAN is unimpressed by how plans for unlimited reliefs were made

KEY POINTS

  • Policy for making tax legislation required consultation on objectives
  • Consultation on high-risk tax avoidance received mainly negative responses.
  • Attack on charity donations had an unclear motive.
  • Government should have consulted about the principles of such a cap.

In June 2010 shortly after coming into office the government issued a consultation document called Tax Policy Making: a New Approach. While the administration was a coalition this was a Conservative initiative.

The party had worked on this issue during opposition recognising that it was the process of making tax policy which was broken not just the tax code itself.

By the time the new government was formed with continuity in the Treasury from the previous shadow team the new policy was ready to be announced.

The...

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