Brown warned that outdated tax law is desperate for reform

Brown warned that outdated tax law is desperate for reform

Tax law is outdated, complex and in urgent need of reform, according to the Law Society, which is lobbying the Chancellor of the Exchequer, Gordon Brown, ahead of his pre-budget statement this week.

The submission focuses on capital gains tax (CGT), tax on trusts and stamp duty.Continuous tinkering with CGT has left an unnecessary shambles affecting individuals and businesses, according to the Society's submission, which recommends a complete overhaul of CGT.

Tax on trusts causes individuals to lose out, and should be the subject of a proper review, the report said.

The fact that stamp duty - dating to the 1820s and the subject of 120 Acts of Parliament - has evaded major reform, is nothing short of a disgrace, the submission argued.

Imposing the duty on the current financial world is 'messy and incomprehensible'.

Edward Troup, chair of the Society's revenue law committee, said: 'Self-assessment has thrown the spotlight on to a huge number of problems which can no longer be ignored.'

Jeremy Fleming