Another exciting time in the world of tax!
With the snap election and the dissolution of Parliament, outstanding bills had to be passed or scrapped before Parliament shut up shop and went on the election trail – and this process is called a Wash Up!
The Finance Bill is too important to be scrapped, so to get it passed in a hurry, lots of contentious clauses had to be dropped.
So what didn’t make the grade?
The headline area is Making Tax Digital. I don’t expect in the long run this will mean we have seen the last of this, and it will almost certainly reappear under the new government, but for now it’s out! It may not even mean that the timescale for introducing it gets delayed but we will have to wait a bit longer to find out.
Also out are the 2 new allowance I wrote about last week! The £1,000 allowances for property and rental income that came in in April 17 are out again and have been scrapped!
Better news is the reduction in the dividend allowance from 18/19 from £5,000 to £2,000 has also gone. This will please a lot of small business owners, but again it could well be reintroduced post election (depending on who gets in of course!)
Other provisions have been scrapped but the above are the most relevant to my clients.
There is a budget already planned for the Autumn and often a mini-budget post an election, so this tax hokey-cokey looks set to continue. Not great when you are trying to plan for your business or your clients!