The Chartered Institute of Taxation (CIOT) has published comments sent to HM Treasury and HMRC setting out an immediate practical concern in relation to the possible retrospective introduction of provisions omitted from Finance Act 2017 in a postelection Finance Bill.
The CIOT’s concern relates to provisions of Finance (No.2) Bill that were dropped before the shortened Finance Act 2017 received Royal Assent on 27 April 2017 and that were stated in the Bill to take effect from April 2017. The Government stated its intention was to re-introduce the dropped provisions in a later Finance Bill (assuming re-election), however, this gives rise to an uncertainty whether the commencement date will remain if, or as and when, the provisions are re-introduced and creates a current practical issue if the re-introduced provisions take effect retrospectively.
The CIOT give examples of a number of clauses which would impose a new charge to tax, specifically:
The CIOT has requested clarification from HMRC on the position for individuals who die or take certain actions during the current interim period between 6 April 2017 and the introduction of the new Finance Bill.
The comments letter can be downloaded here.