Insights

Just this month, we’ve published two separate articles about recent government U-turns regarding important tax policy. Firstly there was the proposed NIC rate rise? Wrong word? for the self-employed, shortly followed by the U-turn on probate fees.

Things have progressed even further since then and we have now gone way beyond a simple policy U-turn to see full circle abandonment of 13 proposed new tax laws, many of which had been announced as far back as last year. As a result of calling an early general election and the dissolution of parliament, all the proposed policies that were remotely contentious have been scrapped for the time being, until further notice. If the Tories win the forthcoming election we may well see them back on the negotiating table, but if they don’t win, who knows what will be in store?

Below are details of all the tax policies that were due to receive Royal Assent this week when Finance Act 2017 is approved on 28^th April. Where we have written in detail about the original policy proposed, we have included a link to the article so you are able to cross reference against what was intended, and what may subsequently come into effect at a future date. There were some very significant changes proposed for business owners particularly. Whoever said that being an accountant was dull!

Over the coming weeks, we will be monitoring the news carefully and reporting on any additional policy changes as they emerge. Watch out for developments on Twitter via @taxtalkrjp, Linked In and via our Insights blog.

In detail: New tax policies excluded from Finance Act 2017

Making Tax Digital: digital reporting and record keeping for income tax and VAT

Changes to taxation of employee termination payments

Relaxation to substantial shareholding exemption rules

Other tax policies abandoned in the short term

• Removal of reduced dividend tax rate for 2018/19 – this was a reduction to the shareholder dividend allowance from £5,000 to £2,000;
• Deemed domicile for all taxes for non-doms;
• £1000 tax free allowances for property and sundry income;
• £500 tax free pensions advice;
• Reduction in money purchase annual allowance (capital allowances) from £10,000 to £4,000;
• Power to tax capital gains made from UK land as income tax not CGT;
• Changes to EIS, SEIS, SITR and VCT schemes;
• Restrictions on the use of corporation tax losses;
• Tax relief for cost of Museum exhibitions;
• VAT in relation to goods stored in UK warehouses.

Learn more: For further background to what was proposed in some of these policies, read our original overview for Businesszone.