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New Finance Bill
11 September 2017
What do War and Peace and the Finance Bill 2017 have in common?
Well, the Finance Bill (the second-longest in history), is 674 pages long, so it is roughly the same length as Tolstoy’s epic tale!
The bill is, according to the Chartered Institute of Taxation’s John Cullinane, “pretty much as we expected”.
He felt that the most significant measures in the Bill are probably changes to corporation tax and the regime for non-UK domiciles. The two schedules on corporate 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.
Other measures include:
* Reduction of the annual tax-free dividend allowance from £5,000 to £2,000 from April 2018.
* Reduction of the money purchase annual allowance from £10,000 to £4,000 for the tax year ending in April 2018.
* Introduction of a £500 advice allowance. A tax-free sum taken from a pension pot to pay for financial advice. People can do this x3 times provided they are under 55.
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