Finance Bill (No.2) to be published Friday 8 September
Topics expected to be covered include changes to corporate loss relief, measures to tackle tax avoidance and amending non-dom rules
The government has confirmed that the hotly anticipated second Finance Bill is due to be published Friday 8 September and will be debated in Parliament the following week.
The original Finance Bill was the lengthiest to date, at 776 pages, but upon the announcement of a surprise general election in June the majority of measures were dropped to produce a condensed Finance Act prior to the election.
While the resolutions were debated in parliament earlier this week, Financial Secretary to the Treasury Mel Stride said the new bill will “pick up where we left off and legislate for the provisions that were introduced and withdrawn due to time constraints”.
Over half of the resolutions will be retrospective and will be applicable from the start of the 2017-2018 tax year, which Chair of the Treasury Committee Nicky Morgan referred to as “alarming”.
The legislation covers 48 resolutions, as outlined in the notes published by the government this week. All 48 were passed by MPs, although three were put to a vote by Labour. These were:
- resolution 4 on termination payments, critiqued for going beyond targeting abuse to targeting workers losing their jobs, even those who had been discriminated against.
- resolution 13 on Business Investment Relief, which was critiqued for being an unjustified tax break for non-doms
- resolution 22 on trading profits taxable at the Northern Ireland rate, which was critiqued for potentially allowing Northern Ireland to be used as a tax haven by corporations
There was no mention of Making Tax Digital in the government’s published notes, but the parliamentary debate reiterated that only businesses with a turnover above the VAT threshold will have to keep digital records from 2019 and this would not be extended until at least 2020.
Other topics expected to be covered are changes to corporate loss relief, measures to tackle tax avoidance and amending non-dom rules, including ending permanent non-dom status for those who are permanently based in the UK.
Don’t forget to register for our webinar on the Finance Bill (No.2) tomorrow Friday 8 September at 9:30am!