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A tax avoidance crackdown has been quietly shelved until after the general election after MPs agreed there was not enough time to debate it.

Tough new penalties were due against lawyers and accountants who "enable" tax avoidance which HMRC later decides is against the rules.

It was designed to target firms that exploit loopholes in the system to help people avoid tax without actually breaking the law.

A second law was also set to axe non-dom tax status for people who have lived in the UK for 15 of the last 20 years.

But both were wrapped up in a bundle of measures shelved yesterday as MPs rushed to pass a slimmed-down version of the Budget on time.

Labour and Tories both agreed there was not enough time left to debate the schemes, and several others, before Parliament is dissolved on Tuesday.

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The Tories promising to return to the rules if they win the election.

But the Lib Dems claimed shelving them "makes a mockery of Theresa May’s claim to be delivering for the many not the few."

John Pugh, a member of the Commons Public Accounts Committee, said: "It seems promises to crack down on tax avoidance after the Panama Paper leaks were nothing but hot air."

No MPs, including Lib Dems, voted against the final version Budget - formally enacted in the Finance Bill No 2.

(Image: Southport Visitor)

The postponing of other measures yesterday was hailed as a victory by the Chartered Institute of Taxation.

They included plans to force small businesses to file tax returns every three months and slash the tax dividend allowance for the self-employed from £5,000 to £2,000.

Treasury minister Jane Ellison told the Commons: "The Bill before us is proceeding on the basis of consensus.

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"A number of key policy changes to the tax system, such as measures to tackle tax avoidance, are not proceeding now and will be brought forward in a Finance Bill at the first opportunity after the election.

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"However, even in its shortened form, the Bill takes action in three areas that have been consistent priorities in our changes to the tax system."

Ms Ellison said this includes action to reduce the deficit and raise funds for public services, making the tax system fairer and also introducing the sugar tax.

The Bill will undergo further scrutiny in the House of Lords before it can become law next week.

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Labour's Shadow Chief Treasury Secretary, Peter Dowd, said he agreed with the delay.

"We can and should wait to deal with [these clauses] until after the general election, as that would provide the opportunity for them to be properly scrutinised," he told MPs.

He said returning to a crackdown on tax avoidance was needed.

"It is time for a wholesale shift in how we approach taxation and the treatment of self-employment given the rise of the gig economy in recent years," he added.