The government has published Finance Bill 2017-19, which contains a number of measures that will affect investors and savers.
Many of the changes contained in the Bill were expected in April 2017 but were postponed due to the announcement of the snap general election, which took place on 8 June 2017.
Most of those changes have now been re-instated, with immediate effect:
- reducing the money purchase annual allowance (MPAA) from £10,000 to £4,000
- reducing the dividend allowance from £5,000 to £2,000 from April 2018
- abolishing permanent non-dom status so those living in the UK for years pay tax the same way as UK residents.
However, there was no mention of the cold-calling legislation to crack down on pension fraud, despite plans announced by Department for Work and Pensions earlier this month.
The government hopes its Bill will make the tax system fairer by tackling avoidance and evasion.
Mel Stride, financial secretary to the Treasury, said:
“A fair tax system is a key part of our plan to build a fairer society.
“The second Finance Bill 2017 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.”
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