26th April 2017
The government has dropped several controversial tax measures from its Finance Bill following the decision to call a snap general election on 8 June 2017.
Measures shelved from the bill include plans on Making Tax Digital, corporate loss relief and interest deductibility.
Personal tax changes scheduled to come into force have also been removed, including:
- £2,000 dividend allowance cut for tax year 2018/19
- £4,000 money purchase annual allowance.
Clauses removed are likely to return in a bill under new parliament after the election.
Bill Dodwell, president at the Chartered Institute of Taxation, said:
“Since the Finance Bill was published last month, we have identified a number of changes that we believe are needed to the legislation on areas including in complicated areas such as loss relief and interest deductibility.
“Delaying this legislation until the summer will hopefully allow time for our concerns to be looked at and taken on board by government.”
Anita Monteith, tax manager at ICAEW, added:
“This is a sensible decision by government. Making Tax Digital plans remain controversial and need more scrutiny by those who will be affected, and most importantly proper parliamentary debate - a clear roadmap as to how MTD will work in practice is needed.”
Talk to us about how these changes may affect you and your business.