The government published Finance Bill 2017-19 on 8 September, reintroducing key legislative measures that were previously dropped from Finance Bill 2017 as a result of the snap General Election.
The reduction in the pensions money purchase annual allowance (MPAA) was included in the Bill, which has fallen from £10,000 to £4,000. This measure will be enforced retrospectively, and has been backdated to the beginning of the 2017/18 tax year. The government also intends to introduce a £500 pensions advice allowance, which will replace the current £150 cap.
Meanwhile, a reduction in the dividend allowance means that it is set to fall from £5,000 to £2,000 from April 2018.
Key Making Tax Digital (MTD) reforms were also included in the Bill, which outlined framework for VAT reporting under MTD.
Commenting on the publication of the Finance Bill, John Cullinane, Tax Policy Director at the Chartered Institute of Taxation (CIOT), said: ‘The Bill . . . contains clauses paving the way for MTD, substantial changes to the rules for fulfilment businesses and a range of anti-avoidance measures, including penalties for enablers of avoidance schemes.’