Truncated finance bill omits key corporate tax measures

The longest ever UK finance bill completed its House of Commons stages on April 25 after members of Parliament agreed to remove some of the bill’s most complex measures, including provisions on hybrid mismatches and relief for corporate losses and interest.

The controversial Making Tax Digital legislation was also removed from the bill, which will be considered by the House of Lords on April 26 but cannot be amended further. The amended bill, likely to run to about 140 pages instead of the original 762, will become the first finance act of 2017 …

The government could easily have pushed harder to retain many of the corporation tax measures on the basis that there had been full public consultation, Jeremy Cape, tax partner at Squire Patton Boggs, told Tax Analysts. The original bill contained some of the most complex provisions ever seen, and in some respects represented “the most fundamental shift in the basic tenets for corporate income taxation in a generation,” he said, adding that rushing the bill through in its entirety would have been a “damning indictment of the wholly inadequate process for the proper scrutiny of finance bills.” Read more:

My news story for Tax Analysts, April 26 (paywall)