Second Finance Bill of 2017 (UK)
Details of measures to tackle tax avoidance and evasion and address various imbalances in the system dominate ‘Finance Bill: September 2017’ – a second Finance Bill published this year to provide details of proposals cut from the original 2017 Finance Bill because of pre-election purdah.
Measures to tackle avoidance/evasion include
- new penalties for those who use tax avoidance schemes later defeated by HM Revenue & Customs
- updated company interest rules to ensure big businesses cannot use excessive interest payments to reduce tax
- changes to prevent individuals from using artificial schemes to avoid paying tax owed on their earnings
Measures to tackle imbalances in the tax system include
- abolishing permanent non-dom status, so that those who have lived here for years pay tax in the same way as UK residents
- reducing the dividend allowance from £5,000 to £2,000 from April 2018 to limit the difference in tax treatment between those who work through their own company and employees/self-employed
- reducing the Money Purchase Annual Allowance from £10,000 to £4,000, to limit the extent pension savings can be recycled to get extra tax relief
Supporting documents for measures in the Bill are listed under three headings
- notes on resolutions – which comprise updated explanatory notes on each of the 48 resolutions in the new Bill
- updated draft legislation comprises technical adjustments and additions to policies that have already been announced. This section includes a list of provisions that will continue to apply from the start of 2017 to 2018 tax year or other point before the forthcom8injg bill is introduced
- guidance on the passage of the Bill and associated documents
See our previous post on the first finance bill
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