Policy paper

Tax Policy Making Principles

Published 12 June 2025

1. Introduction

The government has promised to deliver a decade of national renewal. To deliver long-term change, the tax system must play its part in supporting economic stability and kickstarting economic growth.

A stable tax system plays an important role in creating the conditions for economic growth: it provides businesses with the stability and certainty needed to make long-term investment decisions, it ensures that taxpayers pay the right amount of tax the first-time round, and it reduces the administrative burden on taxpayers allowing businesses and workers to focus on adding value to the economy.

It is also important that government works in a smarter, more agile way to deliver change quickly, whilst fully and flexibly engaging with individuals, practitioners and businesses in the development of tax policy.

Recognising this balance, this document sets out the principles that will guide how the government will design and deliver tax policy changes.

2. Predictability and stability

The government바카라 사이트™s approach to tax policy making is underpinned by a commitment to a single major fiscal event each year, whereby tax policy measures announced at the annual Budget are legislated for in an annual Finance Bill or appropriate legislative vehicle.

Where possible, the government will look to provide further predictability and stability to taxpayers by indicating a clear direction of travel for the tax system. An example of this is the Corporate Tax Roadmap that was published at Autumn Budget 2024. The government has already started to deliver on the commitments set out in the roadmap, including consulting on aspects of the Corporation Tax regime, such as the Reform of UK law in relation to transfer pricing, permanent establishment and Diverted Profits Tax which was launched on 28 April 2025. This approach has given businesses more of the certainty that they need to make long-term decisions, and the confidence that the UK intends to maintain its competitive position among major economies.

3.   A smart and agile approach to consultation

3.1 Timing

A key principle that underpins the government바카라 사이트™s approach to tax policy making is robust engagement with interested groups. Tax professionals have said that responding to multiple consultations that have been published at single points in the tax policy making cycle is resource intensive. Their preference is to spread the burden of responding more evenly throughout the year.

In response to that feedback, the government will take a more agile approach to consultation by publishing any supporting documents flexibly following announcement.

The government will also take a more flexible approach to technical consultation on draft legislation. While draft legislation will typically continue to be published on Legislation day (L-day) in the summer, the government will, where appropriate, look to publish technical consultations at other points in the cycle sufficiently in advance of the introduction of the Finance Bill to ease the burden on stakeholders. This is a continuation of the approach taken by the government since the start of the Parliament in July 2024.

To provide stability and predictability to taxpayers, the government will clearly update on tax announcements at key points throughout the fiscal event cycle (e.g. at Budget).

3.2  Engaging fully and flexibly with stakeholders

The government recognises the importance of engaging with taxpayers on the development of tax policy wherever possible.

The government must also be able to deliver change quickly. Hence it will work flexibly, considering where and when it is appropriate to engage on tax policy with external stakeholders, and will consider the best channels for doing so.

The government will prioritise dynamic and frequent engagement with tax professionals. The Exchequer Secretary to the Treasury has already conducted and will continue to conduct extensive engagement on tax policy, meeting directly with stakeholders. During this Parliament, examples of such engagement include roundtables to inform the Corporate Tax Roadmap and the Tax update spring 2025: simplification, administration and reform package. As in these cases, the Exchequer Secretary to the Treasury will ensure that stakeholders have an opportunity to provide feedback on tax policy making alongside discussions on specific tax policy issues.

Similarly, policy officials will continue to collaborate with stakeholders at all stages of tax policy development where appropriate. This engagement will be conducted flexibly, through a variety of channels.

In some cases, it will not be appropriate or practicable for the government to formally consult on tax changes 바카라 사이트“ these cases include (but are not limited to) simple rate and threshold changes, and where there is significant forestalling risk. The government will consult on tax policy where it deems it necessary to do so. If a consultation is needed, it will be targeted, precise and only seek information that is genuinely needed.

There is no one size fits all approach for consultation. To deliver change quickly, the government will ensure that consultations last a proportionate amount of time to allow sufficient scrutiny of proposals without unduly delaying policy implementation. It will do so on a case-by-case basis, considering the complexity of the policy, any legal risks, the nature and capacity of interested parties invited to respond, and the need to ensure transparency and adequate scrutiny. The government will, in most cases, look to use standard timeframes for formal, written consultations on draft legislation.

In general, the government will also look to engage with external stakeholders to make sure that tax policy decisions are rooted in strong evidence and robust underlying research. This includes collaboration with the community of tax researchers and academics. HM Treasury and HMRC바카라 사이트™s publication of their Areas of Research Interest for tax in November 2024 sets out questions that seek to understand the current economic landscape and anticipate future challenges and opportunities. The government is actively seeking to collaborate and work with the academic community to ground tax policy in the very latest research, making sure that it is well-informed, innovative and forward-looking.

4.  Transparency

The government will ensure that tax policy making is open and transparent. It will continue to be clear on its rationale for tax changes and its assessment of the policy impacts.

The government will continue to publish tailored Tax Impact and Information Notes when it lays tax legislation. These notes provide external stakeholders with extensive details on policy objectives and impact assessment of tax measures. The government will continue to work closely with the Office for Budget Responsibility to publish certified policy costings at Budget.

The government has heard stakeholder concerns that it is hard to track policy development through the policy making cycle. Where a formal consultation is necessary, the government will make the objectives and scope of the consultation clear in a way that allows interested parties to track policy development.

To facilitate this, the government will explore options for creating a dedicated resource that will provide latest information on all technical tax announcements, an overview of work to date, and links to any relevant publications.

5.  Next Steps

The single major fiscal event cycle will provide a stable and predictable framework for the delivery of tax changes. The government will develop tax policy in an open and transparent way, with agile and frequent stakeholder engagement at the core of its approach. This will enable the government to deliver change quickly, whilst making sure that the impacts of tax policy changes are fully understood.