There was quite a surprise a few weeks ago when our Prime Minister Theresa May, announced a general election for early-June. At the time, we knew the new Finance Act 2017 was yet to be passed for full legislation and as such to make it an act of law prior to the end of the current government a much-reduced finance act was put before parliament and passed.
What this meant was that a number of areas that were in were removed and put on “temporary hold” and the expectation is that once the new government is in place – if it’s the same government of course these would be re-instated and the full act passed.So, what’s still in:
Income tax rates for 2017/18 Corporation tax rate for 2018 Air passenger duty rates for 2017 Insurance premium tax rates from June 2017 IR35 for the public sector VED duty rates from April 2017 Alcohol and tobacco duty rates Soft drinks levy Changes to salary sacrifice schemes Deduction of tax at source Abolition of Employer Shareholder Scheme.And what’s been put on hold:
Making Tax Digital Reduction in Annual Tax Free Allowance of dividend income to £2,000 £1000 tax free allowances for property and sundry income Pensions Advice tax free limit due to be increased to £500 Changes to the taxation of termination payments Money Purchase Annual Allowance reduction to £4000 Power to tax capital gains made from UK land as income tax not CGT Deemed domicile for all taxes for non-doms Changes to substantial shareholding exemption