UK Chancellor Philip Hammond should avoid rushing through a large number of tax changes without any real parliamentary scrutiny, the Chartered Institute of Taxation (CIOT) has said.
CIOT said that following the announcement of a snap election on June 8, the timetable for Finance Bill 2017 will inevitably be truncated. Rather than the expected two days of House of Commons debate and 14 to 20 standing committee sessions, plus two days of report stage and third reading debate, precedent suggests that the committee and report stages will be compressed into a single day, it said.
The CIOT is urging the Government to drop the majority of the current Bill and keep only those measures essential to maintain the Government's revenue raising capacity, such as renewing the provision of income tax, and other measures which are required urgently, such as anti-avoidance provisions. It said that measures dropped could be reintroduced in a post-election Finance Bill where they can be scrutinized at greater length.
The CIOT said that a truncated timetable would not allow for adequate consideration of the matters it has raised, including areas such as loss relief and interest deductibility.
"A post-election Finance Bill would also enable more of the framework for Making Tax Digital to be put in statute, rather than brought in through regulations," it said in a letter to the Government.