Govt promises retrospective tax only for 'exceptional circumstances'

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The government has promised it will only implement changes to tax legislation retrospectively in "wholly exceptional circumstances", after concerns were raised that it could damage the UK's reputation.

In his budget earlier this year, George Osborne (pictured) said the government would move "swiftly, without notice and retrospectively" to make sure anyone buying property for residential purposes does not circumvent stamp duty rules. With a number of other measures also confirmed to prevent avoidance, the Treasury Select Committee asked the government to clarify its stance on retrospection. Meanwhile, John Whiting, director of tax policy at the Chartered Institute of Taxation, suggested retrospection had "great potential to do damage to the image and reputation of the UK's tax system...

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