Module 14 Tax law and legislation Flashcards
What are the three sources of law?
Primary - legislation (statute) and case law (precedent)
Secondary
Administrative quasi legislation
What are the different Acts frequently relevant to tax practitioners?
Stamp Act 1891 - Stamp duty tax
Taxes Management Act - details of responsibilities of taxpayers, administrative deadlines, filing dates, enquiries, penalties and interest
Taxation of chargeable gains act 1992 - CGT for individual and chargeable gains for companies
Value added tax Act 1994 - VAT, responsibilities for businesses and powers of HMRC
Capital Allowances Act 2001 - Detail of capital allowances for income and corporation tax
Income Tax (earnings and pensions) Act 2003 - legislation containing details of employment and pension income
Income Tax (trading and other income) Act 2005 - Legislation covering an individual’s trading, property and other income
Income tax act 2007 - legislation covering income tax and details of an income tax computation
Corporation tax act 2009 - Main taxable profit provisions for corporation tax including rules on quantifying trading and other income (property, NTLR, intagibles etc)
Corporation tax act 2010 - Legislations covering the corporation tax calculation, associated companies etc
What is legal precedent?
Rules of law deduced from judges’ decisions
What is the binding part of a legal precedent?
Ratio decidendi - the legal reason for the decision
What is Obiter dicta?
Other words, asides, things said along the way which may be persuasive in future cases but do not have to be followed
What is secondary (delegated) legislation?
This is legislation providing additional rules or detail
Statutory instruments and regulations are the most common types of secondary legislation
SI can be used to allow the provisions of an Act to be brought into force without Parliament having to pass a new Act
What are administrative quasi legislations?
Other material that does not fall into primary or secondary legislation
Statements of practice (SPs) - Set out HMRC’s interpretation of particular issues, how issues wil be dealt with in practice
Extra Statutory concessions (ESCs) - set out a position contrary to legislation which HMRC is prepared to accept
Press Releases - covers many topics and issued by HMRC
Revenue interpretations (RIs) - same as statement of practice
HMRC Manual - not published in legislation books but these internal manuals are often used by hMRC staff and referred to in footnotes to the legislation
