Taxpayers will now face a period of uncertainty after new non-domicile rules and inheritance tax changes to UK residential properties have been dropped at the last minute from the Finance Bill 2017.
With the upcoming ‘snap’ election, the Government is rushing through the Finance Bill 2017 in the House of Commons today, with only 4 hours of debate. To pass the Finance Bill 2017 in the limited timeframe, the Government has dropped a number of significant proposals at the last minute. The provisions that have been dropped include the long-awaited changes to the non-domicile rules, and inheritance tax changes to UK residential properties.
Nimesh Shah, partner at Blick Rothenberg, said: “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 (5 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 election and the majority of the dropped changes will be re-introduced and backdated to have effect from 6 April 2017.
Shah said: “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.”
For more information please contact Nimesh Shah at firstname.lastname@example.org