Government response - basis period reform and uncertain tax treaments

This is the government's response, published 2 February 2022.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government accepts two of the Sub-Committee's recommendations and partially accepts six, with the cover letter stating it "welcomes" the view that basis period reform should continue.

• On overlap relief and guidance, the Government "cannot commit" to the 5 April 2022 deadlines, but commits to publishing basis period reform guidance "as soon as possible after Royal Assent".
• It does not accept deferring Making Tax Digital for businesses without a 31 March-5 April year end, saying it "cannot justify differential treatment purely based on the date accounts are drawn up to".
• On provisional figures, the Government is "planning to explore" the issue with stakeholders from late February 2022, with a decision on whether and how to introduce an easement "by autumn 2022".
• On uncertain tax treatment, it commits to monitoring the regime and will explore a third trigger through informal engagement, with any decision "subject to full parliamentary scrutiny and debate".

Read the government's response ↗ Report an error