Chapter 1 - 1.1 - Sources of Tax Law

Question 1

The basic rules of the UK tax system have been established from which two main areas?

Answer 1

• Tax legislation
• Case law

Question 2

Who are tax strategies set out by?

Answer 2

Political parties who are voted for by the UK public as part of a democracy

Question 3

What is the main fact about tax legislation/statutes?

Answer 3

They are law and therefore adherence is mandatory

Question 4

What is the budget cycle?

Answer 4

The process by which tax legislation is updated each year by the annual Financial Act, which follows the proposals made by the Chancellor of Exchequer in the Budget

Question 5

What does tax legislation include?

Answer 5

Statutory instruments, which are issued where detailed notes are required on an area of tax statute

Question 6

What does case law refer to?

Answer 6

The decisions made in tax cases brought before the courts

Question 7

What happens in the case law?

Answer 7

Often the case argues a certain interpretation of the tax law should be applied. These rulings are often binding and therefore provide guidance on the interpretation of tax statutes