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The head of taxation at the AACA has warned that next week's Budget will be 'tough' for Alistair Darling.
And he has questioned whether it will offer the promise of a fair and stable British tax system.
With details of reforms to capital gains tax, income shifting and the non-domiciled expected to dominate Alistair Darling's speech to the Commons, the Budget 'is bound to be a tough one for the Chancellor', said Chas Roy-Chowdhury.
He added that it will likely 'tread a fine line between raising revenue for the public purse and attempting to be tax-friendly.
'[We] will be questioning whether announcements made next week will add up to the ACCA's test for a good tax system: do they encourage stability, certainty, simplicity and fairness?'
Mr Roy-Chowdhury then flagged up several issues ahead of 12 March.
CGT
'From 6 April 2008, new CGT rates of 18 per cent will apply, replacing rates of 40 per cent. Since the Pre-Budget Report, business has been preparing itself for the withdrawal of indexation and taper relief.
'Looking ahead, ACCA fears that the new tax rules in this respect will impact adversely on economic activity by encouraging 'short-termism'.
'And will next week's Budget seek to exclude second properties from the 18 per cent tax band?'
Corporation tax
'CT rises to 21% in April 2008, then to 22% in 2009 for small businesses, but then the rate falls for big business from 30% to 28%.
'There is little doubt the impact will be felt unfairly by small business.'
Income shifting
'The ACCA is concerned that anticipated changes to income shifting arrangements will force spouses to share financial details, whether they want to or not.
'The Government is now proposing a much higher burden of proof and record keeping requirements for family businesses; another burden for small business.'
Non-doms
'While imposing a £30,000 levy on non-doms meets the demand for tax clarity and certainty, it does not send the right signals to talented international entrepreneurs who want to do business in the UK.'
Green taxes
'If placing sustainability at the heart of the Budget is the aim, then the ACCA anticipates tax changes for cars and planes. But any green taxes need to be sold to the taxpayer carefully and with clarity.
'The tax collected here needs to be ploughed back into green initiatives. There is a strong case for government to prove that green taxes are allocated for specific green projects.'
Basic rate
'The fall in the basic rate of tax from 22 to 20% from 6 April will have an unfortunate knock-on effect for charities. They stand lose from the Gift Aid scheme, which offers tax-free donations.
'After 6 April, for every £1 donated the amount will be £1.25, rather than £1.28 under the current tax regime.'
