Chancellor Philip Hammond has been warned against rushing through new tax legislation as the Government’s Finance Bill is set to hit the House of Commons next week.
The legislation, which is said to be the longest finance bill in history, is set to end permanent non-dom status, introduce new anti-tax avoidance measures and make changes to interest deductibility and carried forward losses for larger corporates.
The Chartered Institute of Taxation has written to Hammond to call for the bill to be slimmed down, focusing only on essential revenue raising measures such as renewing income tax provisions.
The letter reads: “‘Most other measures should be left until a post-election Finance Bill where they can be scrutinised at greater length.
“This is not simply about the formality of parliamentary debate. Since the Finance Bill was published on 20 March, CIOT has identified a number of changes that we believe are needed to the legislation on areas including in complicated areas such as loss relief and interest deductibility.”
Other measures, such as trying to digitise small business tax records, could also come under pressure, with Labour leader Jeremy Corbyn saying he would give businesses turning over less than £83,000 a pass on the rules.
If the Bill follows normal procedure, it will be debated for two days in the Commons, with a further two days of debate come report stage and third reading.