Finance Bill 2016: Simple Assessment

The government is currently undertaking a process known as ‘Making Tax Easier: The end of the tax return’. This includes digitalising tax returns and enacting legislation to remove the need for tax returns in circumstances where HMRC already hold information sufficient to make an assessment.

New legislation included within Finance Bill 2016 will enable HMRC to make an assessment of a person’s income tax or capital gains tax liability without requiring a tax return to be completed where sufficient information is held to do so. This measure will take effect from the date of Royal Assent to Finance Bill 2016.

This measure is part of the move to a digitalised tax world with taxpayers entering information onto the government portal to enable HMRC to assess tax without a formal tax return. Individuals with simple tax affairs are likely to see their tax affairs moved to this procedure.