What does the Hung Parliament mean from a taxation viewpoint?
Probably the status quo will have to remain for a while. We will have a weak Government that will not be allowed to increase taxes on the lower earners and will be wary of over taxing the higher earners, who traditionally represent the core supporters of the Conservative Party. The last few years have seen a huge number of changes, so perhaps we can enjoy a relatively settled period of taxation, seeing minor tweaks instead of wholesale changes. Perhaps plans to cut the rate of corporation tax to 17% will meet with resistance.
As before the election, it was implied that Labour were also in favour of plans to Digitalise tax, our expectation is that the Making Tax Digital legislation will be approved later this year, and the first businesses will have to comply with the MTD requirements from April 2018.