The selection of amendments for the Finance Bill shows that government plans to drop 72 out of the 135 clauses and 18 out of 29 schedules. The residual Bill has been estimated to be roughly 140 pages in length compared to the current 762 pages, a reduction of more than 80% by volume. 

Making Tax Digital has faced constant criticism from MPs and the tax and accounting profession over its short timetable, with the majority calling for it to be delayed. It is unknown whether HMRC will push back the implementation date of 1 April 2018 for VAT-paying unincorporated businesses with a turnover above £85,000 now Making tax Digital has been dropped from the Bill.

During the debate, Jane Ellison, financial secretary to the Treasury said: 'The Bill is progressing on the basis of consensus and therefore, at the request of the Opposition, we are not proceeding with a number of clauses. However, there has been no policy change. These provisions will make a significant contribution to the public finances, and the government will legislate for the remaining provisions at the earliest opportunity, at the start of the new Parliament.

'The government remain committed to the digital future of the tax system, a principle widely accepted on both sides of the House. We recognise the need for the House to consider such measures properly, as called for by my right hon. Friend the Member for Chichester (Mr Tyrie) and his Treasury Committee.That is why we have decided to pursue those measures in a Finance Bill in the next Parliament, in the light of the pressures on time that currently apply.'

On 18 April, representatives from CIOT, ICAEW and ACCA were up before the Treasury Select Committee to review issues raised in the Finance Bill, with all three witnesses, after a push, agreeing that Making Tax Digital plans should be parked and not included in the forthcoming Bill.

Chas Roy-Chowdhury, head of tax at the Association of Chartered Certified Accountants (ACCA), said: ‘We welcome the government’s decision to avoid rushing the MTD legislation process.

‘ACCA has raised some serious concerns about the implementation plan for MTD, and we advised at last week’s Treasury Select Committee hearing that it be delayed until after the General Election to ensure that there is time for full and comprehensive debate.

‘We also welcome the decision to delay other measures considered ‘controversial’—such as interest restriction, loss relief carry forward, an end to permanent ‘non-dom’ status and the dividend allowance reduction—so that they can be subject to the necessary scrutiny before being passed into law. ACCA will be continuing our discussions with the government on these issues once Parliament resumes.’

As well as Making Tax Digital, all corporation tax measures have been left out of the Bill including carried forward losses and corporate loss relief.

Changes to overseas pensions and offshore transfers have remained in the Bill as well as the sugar drinks industry levy and disguised remuneration relating to employment income provided through third parties.

Last week, the Chartered Institute of Taxation (CIOT) wrote to Chancellor Philip Hammond urging him not to rush through tax changes without any real parliamentary scrutiny first.

The institute advised the government to keep only the measures essential to maintain the government’s revenue raising capacity, such as renewing the provision of income tax, which has not been cut from the Finance Bill.

CIOT President, Bill Dodwell, said: 'This is a sensible, pragmatic approach from the Government and Opposition. Agreeing to leave most of the complex and controversial clauses in the Finance Bill until a post-election Finance Bill where they can be scrutinised at greater length.

'As we said in our letter to the Chancellor, this is not simply about the formality of parliamentary debate. Since the Finance Bill was published last month, we have identified a number of changes that we believe are needed to the legislation on areas including in complicated areas such as loss relief and interest deductibility. Delaying this legislation until the summer will hopefully allow time for our concerns to be looked at and taken on board by government.

'We particularly hope that the delay in legislating for Making Tax Digital will enable more of the framework for this huge project to be put in statute, rather than brought in through regulations, which are subject to less scrutiny and unamendable.'

Following the announcement of the snap general election on 8 June the schedule for the Finance Bill has been shortened with the committee stage debate limited to four hours, with all Treasury select Committee evidence sessions being cancelled.

Dodwell said: 'If the original Bill was the weight of a family sized turkey the Act which gains Royal Assent later this week will be more of a "turkey crown for one" portion. However going through 140 pages of legislation in barely two hours is still less than ideal.

'Hopefully this will be the last time there is a need for such a compacted process. From this autumn the move to holding a single fiscal event (Budget) in the autumn will lead to a Finance Bill introduced in December and passed in the spring. The act of calling an election in March or April (the usual practice) should affect the passage of future Finance Bills little if at all.'

It is likely that most if not all of the provisions dropped will return in a Bill after the election, regardless of which party wins.

The full list of what is in and what is out of the Bill. produced by CIOT, is available here.  finance_bill_2017_removed_clauses_and_schedules.pdf