The Finance Bill will benefit the elderly, the disadvantaged, employees on lower wages and the small business sector, according to the Institute of Taxation. It has welcomed the Government's reform of the application of capital acquisition tax (CAT) as applied to the family home. The family home is now exempt from CAT where it is either the donor's principal private residence and/or the principal private residence of the recipient who has lived in the house continuously for at least three years previously.

Institute president Mr Adrian Crawford said the improvements to the reliefs on the transfer of business and agricultural property were also positive developments.

The Bill has simplified the tax code, in particular the law in respect of mortgage interest relief and dividend withholding tax. The Institute further welcomed the early introduction of the 12.5 per cent corporation tax rate for trading income and the increase in relief from capital gains tax where a business is being disposed of.