Introduction
George Osborne's second Budget had few shocks, although the
reduction in the headline rate of corporation tax seemed to have
been a well-kept secret.
The Coalition Government has introduced a new way of setting tax
policy. This includes a strict timetable for any changes to be
announced in a spring Budget, followed by consultation during the
summer, leading to the publication of draft legislation in the
autumn. The Finance Act will then be signed off by the end of the
calendar year, with new rules applying from the following 6
April.
Many of the Chancellor's Budget announcements will become
effective next year or later, and we anticipate a flurry of
consultation papers over the coming weeks in line with the new
policy structure outlined above. Hopefully the new timetable will
help the Government to achieve its objective of creating a more
certain and stable tax system.
