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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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Government Confirms Move away from ‘Significant Policy Changes’ at Pre-Budget Report this Year

In recent weeks, the Chancellor George Osborne wrote to the Chair of the Treasury Select Committee setting out HM Treasury's plans for the autumn. In the letter it was also announced that the Chancellor had asked the Office of Budget Responsibility to produce their autumn forecast.

In addition, the Chancellor confirmed his intention that draft legislation to establish the Office of Budget Responsibility on a statutory basis will also set out the legal requirement for HM Treasury to produce an annual budget for each financial year. In line with the Government's objectives for more certainty and stability in the fiscal cycle, it will remove the requirement for a Pre-Budget Report for future years.

The focus this autumn has therefore been be on developing and implementing the tax reforms announced in June.

Over the summer both HMRC and HM Treasury consulted with tax practitioners, business and academics on this proposed new approach to how tax policy is developed, communicated and legislated. HM Treasury advised that responses received to these proposals played a key role in informing the Chancellor's decision to move away from significant fiscal policy changes at the time of the Pre-Budget Report.

The Government has now fully responded to the consultation and has also set out a range of undertakings which will underpin their new approach.

As a result consolidated draft clauses planned for Finance Bill 2011 (or the 4th Finance Bill of 2010!) were published early this month. The Government has also provided updates on a number of significant consultations on key tax reforms ongoing since June.

These updates are being provided in advance of publication of the draft bill to allow for further consultation and a longer period of scrutiny of the draft legislation. HMRC and HM Treasury will also provide updates on the expected timing of these updates as part of the ‘forward-look’ facility available on their websites.

The full text of the Chancellor's letter to the Treasury Committee can be accessed at http://www.hm-treasury.gov.uk