Tax complexity again – or ‘What they did to section 6’

The main rates of income tax are introduced in section 6 of the Income Tax Act 2007, with references to the detailed rules elsewhere.

That section, as it stood before Finance Act 2017 (passed three weeks ago) and as presented in Tolley’s Yellow Tax Handbook online, is on the left hand side of the picture below.

The original version, according to, is on the right. And this is only part of the story, and devolution of rate setting powers will continue to add complexity …

Main rates

Tax advisers (and writers) can charge fees for keeping on top of this sort of stuff, but it’s not always cost effective. And this complexity is not good for taxpayers.

Related: It is important that people understand how the tax system works