HM Insights

Budget update: Finance Bill Amendment 2017

Following the General Election announcement, the Government has dropped many of the proposed changes made over the last couple of Budgets.  The amended Bill is expected to receive Royal Assent by the end of this week.  The proposed changes which have been dropped - some of which were highlighted in our Budget updates - are listed below:

Budget Briefcase Red Tax Personal Income
  • Digital reporting and record keeping (MTD) for income tax and VAT
  • Dividend tax rate drop to £2,000 for 2018/19
  • £1,000 tax free allowances for property and sundry income
  • £500 tax free pensions advice
  • Changes to taxation of termination/redundancy payments
  • Reduction in money purchase annual allowance from £10,000 to £4000
  • Power to tax capital gains made from UK land as income tax not CGT
  • Deemed domicile for all taxes for non-domiciles
  • Changes to substantial shareholding exemption
  • Changes to EIS, SEIS, SITR and VCT schemes
  • Restrictions on corporation tax losses
  • Tax relief for cost of Museum exhibitions
  • VAT in relation to goods stored in UK warehouses

The undernoted changes will remain in the amended Bill:

  • Income tax rate changes for 2017/18
  • Changes to salary sacrifice schemes
  • Deduction of tax at source for Investment income
  • Corporation tax rate changes for 2018
  • Abolition of Employer Shareholder Scheme
  • Air passenger duty rate changes for 2017
  • Insurance premium tax rate changes from June 2017
  • IR35 for the public sector
  • VED duty rates from April 2017
  • Alcohol and tobacco duty rates
  • Soft drinks levy

Get in touch

If you have any questions about personal tax related matters, please get in contact with our Tax Director.