How to get a complicated tax system. By Simon Sweetman
The growth of complexity in tax is not a simple story, but it usually comes from:
- Anti avoidance provisions
- A political purpose to encourage particular behaviour by a particular group
- The granting of concessions / let outs for those seen to be worthy
Let’s think about Capital Gains Tax (CGT). Originally this was a straight charge of 30%, with an initial base cost at 5 April 1965 (the date the tax was introduced).