Taxpayers will now face a period of uncertainty, after significant tax proposals were dropped from the Finance Bill 2017 at the last minute, warns leading accounting, tax and advisory firm Blick Rothenberg.
With the upcoming snap General Election on 8th June, the Government has rushed through the Finance Bill 2017 in the House of Commons, with just four hours of debate yesterday.
To pass the Finance Bill in the limited timeframe, the Government dropped a number of significant tax proposals at the last minute. These tax proposals include the long-awaited changes to non-domicile rules and Inheritance Tax changes to UK residential properties.
Nimesh Shah, a Partner at Blick Rothenberg, reacts to the news: “It is unbelievable that such important provisions have been dropped at the 11th hour, after the painful amount of work that has gone into the process to finalise the legislation. It is even more disappointing for those non-domiciled individuals who were readying themselves for the changes and arranging their affairs in the run-up to the end of the (5th April 2017) tax year.
“The Government should be taking their time with such important tax legislation, and it would have made sense to leave this until after the election. To rush it through in this slapdash way before the election is unsettling for taxpayers.”
It is expected that a second Finance Bill will be published after the General Election, and the majority of the dropped tax proposals will be re-introduced and backdated to have effect from 6th April 2017.
Shah adds: “Non-domiciled individuals will now face a period of limbo, waiting for the outcome of the election and publication of the second Finance Bill. This will be the second time in three years that we will have two Finance Acts in a year, adding to yet more tax legislation.
“Moves like this create unstable and complex tax policy, and the Government needs to put politics to one side in the interest of certainty for taxpayers.”
Landlords, are you aware of the huge changes to tax relief that were introduced from 6th April this year? Get up to date if you weren’t: https://www.justlandlords.co.uk/news/landlords-guide-mortgage-interest-tax-relief-changes/