In a Queen’s Speech which was somewhat light in detail, there was an announcement this week that a Finance Bill will be put before Parliament this Summer.
Readers will recall that following the announcement of a snap General Election in May, the government rushed through a heavily slimmed down Finance Act. As a result, many important measures, notably changes to the system of taxation for non-domiciled individuals, were dropped.
We are expecting the Summer Finance Bill to reintroduce these changes, although this is still to be confirmed. Frustratingly, no timetable has been announced either, and neither do we know whether the rule changes will be backdated to 6 April 2017 (which is when they were originally scheduled to become effective). However, on the basis that Parliament is scheduled to rise for the Summer recess on 20 July, a bill could be tabled in a matter of days.
Particular areas of interest include:
Our advice to clients is to refrain from taking action until the rules are clarified. We will provide further updates via Tax Bites as soon as we know what is happening.
We hope that the Government responds to calls from the Chartered Institute of Taxation and the wider professional community for quick action, and to ensure that this type of situation – where tax changes are scheduled to become effective before Royal Assent is given – never happens again. Perhaps now that Theresa May is in listening mode she will take note!
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