Mon, Jul 17, 2017

Finance Bill No.2-Ministerial Statement and Updated Provisions

On July 13, 2017, the government again confirmed its intention to reintroduce the provisions previously dropped from the Finance Bill 2017 back in April as a result of the snap election. In a written ministerial statement, Mel Stride, the Financial Secretary to the Treasury confirmed the government expects to introduce a second Finance Bill including the withdrawn provisions after the House of Commons returns on September 5, 2017.

Importantly, where policies have been announced as applying from April 6, 2017, or other previously specified points, these dates of application will be retained. They have reiterated that there is no change of policy, and those affected by the provisions should continue to assume that they will apply as originally announced. Notably, the provisions in question include the sections relating to the new “non-dom” rules, disguised remuneration, and rules on corporate loss relief and interest deductibility.

Of particular interest will be the announcement that the new UK-deemed domicile concept will operate from April 6, 2017 as originally intended. Find out how Duff & Phelps can help you navigate the changes and provide assistance in rebassing assets.

In addition to the statement, the government also released a number of technical adjustments and additions to some of the provisions (including those relating to non-domiciled individuals) that are to be reintroduced in an attempt to maximize certainty for taxpayers. On July 14, 2017, a list of the remaining provisions to be re-introduced as originally drafted was released, however, we will have to wait for the Autumn for the final detail.

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