Finance Act reflects scale of legislative burden for business

The new Finance Act has been ‘rushed through’ and fails ‘to support business’, says ICAEW Chartered Accountants Manchester.

The Finance Act is the written document that sets into law the changes to tax and duty made by the Chancellor in the Budget.

This year’s Act is 649 pages – the second longest ever – and highlights the increasing complexity for taxpayers of an ever-expanding tax code, says the ICAEW..

Ian Young, Tax Faculty Manager at ICAEW Manchester, said: “This year’s Finance Act is a far cry from 1979 when it consisted of just 16 pages or the 1950s when ten years’ worth of Finance Acts came to 625 pages, less than this year’s single Act.

“This Finance Act has been hurried through by parliament, with a lack of scrutiny adding to an unnecessarily long and complex Act.

“At a time when UK business is faced with economic uncertainty following the EU referendum results, the Government is failing to support businesses, by failing to simplify tax.

“A simpler tax system will reduce the burden on business by making legislation easier to comply with.

“As far back as 2007, Shadow Chancellor George Osborne called for a ‘radical programme of tax reform to make the system simpler and fairer’ 2007. 

“As the Finance Bill was recently given royal ascent, ICAEW learnt that the Finance Act was the second longest ever, despite repeated promises of simplification.

“Only six have ever been longer than 600 pages and four of them have been in the last five years showing a disappointing trend.”

ICAEW Manchester has 5,300 members – of which 1,700 are from Stockport.