The UK government has announced that the tax changes announced in the pre-election budget in March, and subsequently dropped from the pre-election Finance Bill, will be reintroduced in a post-election Finance Bill. Any changes that were due to start from April 2017 will be backdated to then.
It seems likely that the changes will be reintroduced in much the same form as previously. The government no longer has an overall majority in parliament, but as long as the proposals receive support from the DUP and backbenchers, both of which seem likely, the government will probably be able to carry the proposed changes through.
In our articles on pre-election tax planning and post-election property tax changes, we also had a look at the tax content of the Labour Party manifesto: what it actually says and what you might do to plan for a possible Labour government.
In the meantime it’s back to square one!
Here are the main Finance Bill provisions that were dropped and which will now be reintroduced:
- The new corporate loss relief rules
- Changes to the substantial shareholding exemption
- Corporate interest restriction (for large companies)
- The new deemed domicile rules
- The Inheritance Tax charge on UK residential property owned through an offshore structure
- Taxable benefits – time for making good
- The new regime for the taxation of profits from land
For more information on these changes, please get in touch with your usual BKL contact or use our enquiry form.
