The progress of the Finance Bill 2016 was interrupted by the EU referendum. The Committee stage was completed on the 28th June, but this left insufficient time to progress to the report stage/third reading, and Royal Assent, before Parliament rises for the summer recess on 21st July.
Our newsletter of 25th May explains.
- Completion of the House of Commons report stage and third reading of the Finance Bill is the point at which changes can be accepted as substantively enacted
- The effect of the new tax rates announced in the March Budget cannot be reflected in the accounts until the rate has been substantively enacted
There was a concern that recognition of the SCT rate reduction would be delayed to the December quarter results. As the report stage is now scheduled for 5th September, for accounting purposes the uncertainty is largely removed, and the new rates should apply in September quarter reporting.
The reduction in the PRT rate to 0% was enacted under the Provisional Collection of Taxes Act shortly after the Budget.
Please contact us if you would like to discuss how this could affect your business or have any questions.