Finance Bill 2017 has now been passed, but with only 148 of the original 762 pages. Almost 90% of the tax legislation we were expecting to be passed has now been delayed. So what has changed?
In short – the general election. As Parliament was dissolved on 3 May in advance of the election it was agreed to hold over much of the more complex technical legislation. This means more time and consideration can be given to the proposals rather than rushing through the stages required to turn them into legislation.
A sensible and welcome approach one would say, however, it does leave us in the rather unusual situation of having to advise on tax rules that are not yet law, but nevertheless will apply from 6 April 2017 and so are already in place!
Clauses that have been agreed are mostly those that change the rates of income tax, corporation tax or other duties from April 2017. Whilst clauses that are being held over include:
• Making tax digital
• Changes to the taxation of non-domiciles (non-doms) and inheritance tax on UK residential property
• Changes to the taxation of certain employer related benefits
• The trading/property allowances of £1,000 due to be available from 6 April 2017
• The reduced money purchase annual allowance of £4,000 from 6 April 2017
• The reduced dividend nil rate for 2018/19 of £2,000
• Corporate loss relief and interest restriction
• Penalties for enablers of tax avoidance schemes
It is likely that most, if not all, the provisions will return in a Bill after the election. However, we will need to wait and see if there are any further changes en route.
If you have any questions please call me on 01263 802420 or email firstname.lastname@example.org.