Speaking at ICAEW’s Annual Conference on 16 October, Chief Executive Alan Vallance has announced that the institute is establishing an independent body to review the UK’s tax system.

The Future of Tax Commission will have two years to examine the UK’s current tax regime and provide a roadmap of recommendations ahead of the next General Election, expected in 2029.

“Britain’s distorted and complex tax system, tinkered with over many decades by successive governments and facing massive demographic and technological changes, will not meet the needs of our economy and society in the future. We need radical but practical reform,” warned Vallance. “That’s why we are launching the Future of Tax Commission. It will carry out a root-and-branch review and set out the direction needed to create a modern tax system fit for the 2030s and beyond.”

Complexity and changing world mean reform is crucial

The creation of the commission aligns with feedback from ICAEW members who have consistently called for greater tax simplification, and follows on from ICAEW’s existing work on the key areas that need to be considered in making the tax system fit for purpose.

In launching the commission, Vallance highlighted the way in which the tax regime had been subject to ad hoc changes by successive governments across decades.

He said: “This has resulted in the UK not only having the longest and most complex tax code in the world, but the system being riddled with cliff edges and disincentives that hinder productivity, add unnecessary costs and red tape, and ultimately leave the country worse off.”

In addition to these complexities, ICAEW believes that change is necessary for the tax system to be able to cope with broader societal and economic shifts.

Vallance said: “The world is changing fast. AI, automation, an ageing population and the transition to net zero are reshaping how we work, invest and earn. Our tax system must keep pace to fund vital public services while supporting the businesses and investment that drive growth.”

Hoban promises holistic review

When announcing the formation of the commission, Vallance confirmed that former Conservative MP and Treasury Minister, Mark Hoban has been appointed as Chair.

Hoban, who is an ICAEW Chartered Accountant, acted as Financial Secretary to the Treasury from 2010 to 2012, and has held a series of board roles in financial services since standing down as an MP in 2015.

Hoban confirmed that the commission will not be focusing on a single tax or element of the system but taking the widest possible view. He said: “We will examine the system as a whole and identify what is needed to make it work better for businesses, taxpayers and the wider economy.

“We will follow the evidence, confront the trade-offs, and produce a practical roadmap for a simpler, fairer tax system.”

What the commission will do

ICAEW has confirmed that the Future of Tax Commission is expected to start work from January 2027, once it has its full allocation of commissioners.

Over the succeeding two years the body is expected to publish several papers ahead of its final recommendations in early 2029. While funded by ICAEW the commission will not be subject to the institute’s approval and its suggestions will not automatically become ICAEW policy.

The commission has been asked not only for recommendations, but also how they would be delivered, considering sequencing of reforms and the practicalities of implementation.

As part of its remit to examine the tax system as a whole, the commission will be drawing on expertise from across the tax profession, the business world and public policy, as well as ICAEW member insights.

ICAEW expects there will be opportunities for organisations and individuals to participate in the commission’s work from 2027.