MPAA reduction to go
ahead after all
The Government has confirmed that the second Finance Bill for 2017 will be introduced as soon as possible after the summer recess – parliament is due to return on 5 September. This will legislate for all policies that were included in the pre-election Finance Bill. It also confirmed that policies originally announced to start from April 2017 will be effective from that date.
This includes the reduction to the money purchase annual allowance (MPAA) from £10,000 to £4,000. The MPAA represents a cap on DC pension contributions where pension benefits have been flexibly accessed, as a counter to potential tax avoidance.
Also included are further reforms of non-domicile taxation. These include a new deemed domicile rule applying to non-domiciled individuals who have been UK resident for 15 of the last 20 years (wider reaching than the existing rule as it covers income tax and capital gains tax in addition to inheritance tax) and removing inheritance tax excluded property status from UK residential property held through offshore entities.
17 July 2017