The ins and outs of Finance Act 2017

by Friday after three days’ scrutiny, rather than three months, the Finance Act will get Royal Assent ahead of the dissolution of parliament on 3rd May. The convention is that the Government leaves out all but the most important tax measures such as setting the rate of income tax for the year. Here is confirmation of what was included that affects employers/agents and what we expect to return in Finance Bill No. 2:

 

Measure Included in Finance Act 2017 Expected in Finance Act No. later in 2017?
Tax bands and rates for 2017/18 incl. savings band Yes
Reduction in dividend nil rate band for 2018/19 Yes
Reduction in CT for 2018/19 Yes
Off-payroll working (with amendments – see below+) Yes
OpRA (with amendments – see below+) Yes
Making good time limit of 6th July for P11D benefits Yes
Ultra-low emission vehicles – tax bands for 2020/21 Yes
P11D Section L: assets used apportionment Yes
Pensions advice tax exemption* Yes
Legal expenses Yes
Termination payments – changes to employer NICs from April 2018 Yes
Online self-certified PSAs Yes
Money Purchase annual allowance reduction to £4K Yes
Changes to overseas pensions Yes
Employee shareholder shares abolition Yes
Disguised remuneration Yes clause 48 Yes clauses 49-51
MTD Yes

 

*The pension advice allowance that allows for withdrawal of up to 3 x £500 from a money purchase scheme at any age is already in place via The Registered Pension Schemes (Authorised Payments) (Amendment) Regulations 2017 (SI 2017/397)

+The OpRA amendment was to clarify the continued tax-exemption for benefits provided in connection with a registered pension scheme and the off-payroll amendments remove retail pharmacies in the private sector from the off-payroll rules even if they have an NHS contract, the amendments can be found here