The second Finance Bill of 2017 has been published. It covers new company car tax bands, changes to the application of the money purchase annual allowance (MPAA) and a tax exemption for the first £500 of employer-arranged pensions advice.
The Bill includes all of the measures that were dropped from the first Finance Bill, which was slimmed down to help ease it through Parliament before it broke up for the snap general election.
Mel Stride, Financial Secretary to the Treasury and Paymaster General, said: ‘The UK is a world leader in tackling tax avoidance and evasion, but we must continue to take action to ensure everyone pays their fair share. The Finance Bill will allow us to do just that by preventing companies and individuals from using complicated tax structures to avoid paying the tax they owe, and penalising people that help them to do it.’
Other measures included in the Bill are: abolishing the permanent non-dom status, reducing the dividend allowance from £5,000 to £2,000 from April 2018, and reducing the MPAA from £10,000 to £4,000.
The time limit for making good on benefits in kind (BIK) that are not accounted for via real time information has also been updated. The date of 6 July has been set for BIKs that give rise to a tax liability from the 2017/18 tax year. This follows on from the concession HMRC announced last month.
The Bill will now make its way through Parliament before being reviewed by the House of Lords and receiving Royal Assent.
