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14/07/2017

Implications of Hung Parliament

The result of the General Election has left Teresa May and the Conservative Party clinging on to power with support from the Democratic Unionist Party (DUP) in Northern Ireland. This leads to a period of significant uncertainty for the country as the BREXIT negotiations are just about to start.

Following the General Election there have been important Cabinet reshuffles. Although Philip Hammond retained his position as Chancellor of the Exchequer, Jane Ellison MP the Chief Secretary to the Treasury lost her seat in Battersea.   Ms Ellison was day-to-day lead for Making Tax Digital, so it’s not clear if her demise might lead to another delay, while her replacement Liz Truss gets up to speed.  David Gauke has also moved from the Treasury to become Work and Pensions Secretary.

So what will happen to those measures in the original Finance Bill that did not make it into the first Finance Act 2017?

The planned changes to corporation tax such as the new losses rules were due to take effect from1 April 2017. The changes to deemed domicile were also due to start 6 April 2017. This has put tax planning on hold for companies and individuals affected by the changes.

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Discretionary funding is available from local councils for businesses who meet a set list of criteria. There are a number of exclusions, and businesses can find out more via their local council websites http://ow.ly/D3co50BRbld

From the 1 January there will be new rates for customs duties and businesses will need to decide how they account for import VAT when making a customs declaration http://ow.ly/oZjR50BRb7E

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