Recap on the recent UK General Election result and the impact of the result on UK tax policy.
The UK snap General Election produced no clear majority in the House of Commons. Prior to this, the UK government dropped many of the measures included in Finance Bill 2017, including a new corporate interest restriction regime and corporate loss reform in order to secure a speedy passage of the bill through parliament before it was dissolved. This has created uncertainty for taxpayers on when the dropped measures will be re-introduced and their likely effective date. Questions also remain on the UK government’s likely tax policy throughout the duration of this parliament.
The result of the General Election and the subsequent “confidence and supply” agreement between the Democratic Unionist Party (DUP) and the Conservative Party means that Northern Ireland’s influence in Westminster has potentially significantly increased. This is likely to also have an impact on Northern Ireland’s tax policies, including the implementation of the devolution of corporation tax rate setting to the Northern Ireland Executive.
In this article, Maurice Scullion, Manager, KPMG Tax recaps on the recent UK General Election result and considers the impact of the result on UK tax policy. In particular, he considers where this leaves the measures that were dropped in Finance Act 2017. Maurice also discusses the likely impact on Northern Ireland tax policy of the “confidence and supply” agreement between the DUP and the new Conservative minority government.
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