The Finance Bill No 2 2017 reintroduces various measures that were dropped when the general election was called
Measures included in the latest Bill cover the following:
- tax treatment of payment for the termination of employment;
- changes to prevent individuals from using artificial schemes to avoid paying the tax they owe on their earnings;
- provisions relating to a reduction in the money purchase annual allowance for pensions, down from £10,000 to £4000;
- changes to the rules regarding the tax treatment of non doms;
- reducing the dividend allowance from £5,000 to £2,000 from April 2018;
- an update on the rules around company interest expenses, to ensure big businesses cannot use excessive interest payments to reduce the amount of tax they pay;
- changes to the regime for charging inheritance tax on overseas properties with value attributable to residential property in the UK; and
- Making Tax Digital reporting for VAT.
There are also proposed new penalties for those who enable the use of tax avoidance schemes that are later defeated by HMRC and tougher rules on the use of artificial tax avoidance schemes.
John Cullinane, CIOT tax policy director, said: ‘The most significant measures in the Bill are probably changes to corporation tax and to the regime for non-UK domiciles. The two schedules on corporation tax loss relief and interest deductibility now run to 303 pages between them, not far off half the Bill on their own.
'The Bill also contains clauses paving the way for Making Tax Digital, substantial changes to the rules for fulfilment businesses and a range of anti-avoidance measures, including penalties for enablers of avoidance schemes.
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