Treasury defends abolition of tax 'anomaly'

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The Treasury has defended Gordon Brown's decision to remove dividend tax credits in 1997, calling it an "anomaly" in the tax system which "distorted business decisions and discouraged long-term investment".

Following reports Brown has defended his actions at the launch of the Scottish local election campaign, a Treasury spokesman warns “it is inaccurate and misleading to look at just one element of the package in isolation”. These latest developments follow the release of five documents by the Treasury on Friday evening, under the Freedom of Information act, which relate to the 1997 Budget decision to remove tax relief on dividends paid to pension schemes. The Treasury previously refused to release the documents first requested in February 2005, and after the Information Commissioner ruled...

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