CIOT: Use of retrospective tax legislation worrying

The use of retrospective legislation is concerning as it damages "certainty" in the tax system, an expert has claimed.

John Whiting, tax policy director at the Chartered Institute of Taxation (CIOT), stated that he accepts the government may want to verify the structure, but the use of any such policies should not undermine the principle that people are taxed on the wording of the statute in place at the time of their actions.

He was speaking after what the CIOT has seen as an increase in use of measures after the fact.

Mr Whiting noted that a clear statement was required that could outline when the laws might be used, and parliament would have to consider it carefully before deciding whether or not to take action.

The body recently suggested that HM Revenue & Customs should be doing more to alert people that they had been sent the wrong tax codes - as individuals could lose hundreds of pounds if the mistake was not corrected.