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2.061

Increasing the National Insurance Employment Allowance

From April 2016, the NIC Employment Allowance will be raised from £2,000 to £3,000 a year. Chancellor's Speech mentioned that singleton directors would no longer be able to claim.

2.057

Dividends Taxation

From April 2016. a new Dividend Tax Allowance of £5,000 a year, any more in the Basic Rate Band taxable at 7.5%, 32.5% in the Higher Rate Band and 38.1% in the Additional Rate Band.

Dividend Tax Credits abolished, so presumably no grossing up? If there's no Dividend Tax Credit, then the effective Dividend Higher Rate isn’t 25% but... 32.5%. And of course 38.1% is the old effective Additional Dividend Rate of 30.6% with another 7.5% for good measure.

2.006

64

Rent-a Room Relief

From 6 April 2016 the annual limit of £4,250 will be increased to £7,500.

2.058

“Reform” of the Wear and Tear Allowance

To be replaced in April 2016 by a "new" relief which allows relief only on the actual cost of replacing furnishings... ...which will under no circumstances be referred to as "renewals". Apparently, this measure is intended to prevent landlords claiming tax relief "...even when they have not improved the property". Seems no-one at HMT/ HMRC knows what Wear and Tear is actually for. You could not make this up.

2.059

66

Restricting Finance Cost Relief for Landlords

From 06/04/17, loan interest relief for landlords who are individuals will be removed from rental accounts and instead be given as a 20% tax credit, up to the lower of 20% of: property business profits, and total income in excess of personal (and blind persons' allowance) but excluding savings / dividend income. The measure will be phased in over 4 years.

Excess finance costs may be c/fwds if the tax reduction has been limited by reference to 20% of property business profits but not, it seems, 20% of adjusted taxable income. This may benefit individuals with only a relatively small exposure to rental income. Appears NOT to apply to corporate landlords.

2.083

60

Restriction of Pension Annual Allowance for Top Earners

From April 2016, those individuals

• broadly with incomes (ignoring pension contributions) over £110,000, and

• with pension contributions exceeding £40,000 (including amounts paid under salary sacrifice arrangements),

will have their annual allowance tapered at 50% as a factor of income, down from £40,000 to a minimum of £10,000.

And pension input periods have been aligned to 5th April.

Care needed with salary sacrifice arrangements set up 09/08/15 onwards.

2.084

Pensions Tax Relief

Government to consult on whether / how to undertake a wider reform of pension tax relief - such as to move away from EET (Exempt contributions, Exempt growth, Taxed on payout) to a TEE model?

2.088

32

IHT - New Main Residence Nil Rate Band

Up to £175,000 (each spouse / civil partner, where applicable) phased in over next four years (2017/18 onwards) where transferred to direct descendants on death on/after 6 April 2017.

Withdrawn @ 50% where net estate exceeds £2Million.

Applies to nominated residence (where more than one residence in estate) and even if a residence sold, etc., prior to death, (so long as sold, etc., on / after 8 July 2015) provided value transferred to direct descendants on death. May be transferred to surviving spouse / civil partner, as per main NRB - surviving spouse dies on or after 06/04/17.

Main IHT NIl Rate Band to stay at £325,000 until 2020/21 at least.

1.242

29

Annual Investment Allowance

AIA will fall from £500,000 to £200,000 for expenditure on plant and machinery from 01/01/2016; no matter how generous is the revised figure, businesses will need to be VERY careful about expenditure from 1 January in the taxable period spanning the change. (Change accounting period?)

1.239

26

Corporation Tax Main Rate

19% FY2017 - FY 2019; 20% FY 2020.

Admittedly to make UK more attractive to overseas companies. Made possible, according to the Chancellor's speech, by taxing dividends on resident individuals more heavily. Will annoy European neighbours. Perhaps that's the Chancellor's intention.

2.124

85

Restriction of Corporation Tax Relief for Business Goodwill Amortisation

Amortisation of goodwill purchased after 8 July 2015 will not be deductible. Debits on disposal of that goodwill will be allowed, but only as non-trading deductions. vivat SSE.

2.177

91

Controlled Foreign Companies (CFC) Loss Relief Restriction

For profits arising on or after 8 July 2015, such that UK losses and expenses will not be available to set off against a CFC charge.

2.178

94

Disposal of Stock / Corporate Intangibles Other than in Trade

For disposals made on or after 8 July 2015: the "market value" rules will now effectively over-ride transfer pricing adjustments

2.167

117

"Simplification" of HMRC Debtor and Creditor Interest Rate

Ensures that, from 8 July 2015, HMRC is exposed to only 0.5% interest on all judgment debts, rather than potentially 8%. HMRC entitled to 2% over base. If it's merely commercial restitution, why is it not equivalent?

2.63

Abolishing non-Domicile Status for Long-Term Residents

From April 2017, persons resident in the UK for 15 out of the last 20 years will be deemed "UK-domicile" for tax purposes. 

2.64

Eligibility for non-Domicile Status for UK-Born Individuals

From April 2017, individuals who are born in the UK to parents who are domiciled here, (and therefore with a "UK" domicile fo origin), will no longer be able to claim non-domicile status while they are resident in the UK, despite having acquired a domicile of choice elsewhere. See Technical Briefing

2.172

Tackling the Hidden Economy

Government will extend HMRC's powers to acquire data from online intermediaries (how could they possibly need more powers?) and electronic payment providers.

There will be "new" HMRC investigators from 2016 to exploit this data.

There will also be a digital disclosure channel which should make it easier for taxpayers to disclose unpaid tax liabilities.

2.080

Unfunded Employer Financed Retirement Benefit Schemes

Government will consult on tackling the use of EFRBS to obtain a tax advantage.

2.066

Employment Taxes and Salary Sacrifice

To be "actively monitored" to gauge effect on tax receipts.

2.163

Self-Employed National Insurance Contributions

Consultation forthcoming on abolition of Class II and reforming Class IV, for the self-employed.

2.164

Simplification of the Treatment of Termination Payments

Consultation forthcoming

2.165

Tax Relief on Travel and Subsistence Expenses

Discussion paper promised shortly

2.166

Making Tax Easier

The government will "transform" tax administration for individuals and small businesses over this parliament.