CORPORATION TAX REFORM
Proposals to advance the government's reform of corporation tax in the three areas identified in the August 2002 consultation, "Reform of corporation tax", have been published by the Inland Revenue. The three areas are changes to the way in which the scheduler system currently requires a separate computation to be made of the amount of income from each source. The aim being to provide greater flexibility in setting off losses in one activity against profits from another; changes to the tax treatment of trading and investment companies to remove outdated restrictions and facilitate group restructuring; and changes to the tax treatment of capital assets to reduce distortions in the system. In addition, the proposals address the reform of corporation tax in its wider international context.

"Corporation tax reform: a consultation document" is available at: www.inlandrevenue.gov.uk/consult_new/corp-tax-reform.pdf