Retrospective Legislation And Section 58(4) Of The Finance Act 2008

EDM number 425 in 2013-14, proposed by Mike Weir on 16/07/2013.
Categorised under the topic of Taxation.

That this House believes retrospective legislation contradicts the principles that underpin a fair and competitive tax regime; further believes that people?s actions should only be judged under the law as it stood at the time; notes with concern that the legal definition of partners and changes to rules regarding double taxation agreements introduced through section 58(4) of the Finance Act 2008 were deemed always to have had effect; further notes that the Chartered Institute of Taxation called this measure extreme and unjustified, the Law Society said it was wrong in principle and the Institute of Chartered Accountants said it sent out a damaging signal about the stability of the UK tax system; further notes HM Treasury?s estimate that up to 2,200 taxpayers are affected by these changes; further notes a survey by the No To Retro Tax campaign which suggests that 38 per cent of those affected will be bankrupted and 47 per cent will have to sell their homes; further notes with concern the explanation that retrospective legislation was introduced in this instance to remove the need for costly and protracted litigation; questions why, if section 58 did not change the legal situation, there was any need to introduce it; further notes previous comments from the Chancellor of the Exchequer that retrospective legislation in tax matters will be confined to wholly exceptional circumstances; further questions in what way this arrangement was exceptional; and further believes that those affected by the legislation should have their actions judged according to the law as it stood at the time.

This motion has been signed by a total of 25 MPs.