FD Intelligence

Have your say on the simplification of corporation tax

The Office of Tax Simplification (OTS), part of the Treasury, has invited Grant Thornton UK to contribute towards a project that will seek means of, and make recommendations for, simplifying the preparation and process of corporation tax returns.

The resulting report and its recommendations, once completed, will be submitted to ministers.

The review will consider both the technical and administrative components of the corporate tax computation, and return with the aim of identifying the areas where simplifications and improvements could be made. The relative impact and significance on companies of all sizes and sectors will also be considered.

It will cover the adjustments between accounting profit and corporation tax profit, including the main categories or sources of income for corporation tax purposes (eg trading, property, loan relationships, chargeable gains) and the related allowable expenses. The OTS is interested in hearing opinions on:

  • the extent to which these categories fit the modern context
  • the legislative and practical complexities that arise from them and their interaction with accounting or other business processes
  • to what extent these categories are required to support tax policy imperatives
  • the potential for reducing the difference between accounting profit and tax profit (including the possibility of combining some of the categories) and the legislative, practical and Exchequer impacts of doing so taking into account any implications for general transitional and loss relief rules (including the reforms announced at Budget 2016) and maintaining a separation between capital and revenue
  • the potential for having simpler rules for smaller companies.

We are keen to contribute towards the OTS review and would be delighted to hear your thoughts.

If you’d like to contribute then please contact your usual Grant Thornton contact or Donna Starrs, a senior manager in our Glasgow office who is leading our response to this consultation.