Finance Bill 2016
The 2016 Finance Bill has been published together with explanatory notes. The Bill mainly includes measures announced in the July 2015 Budget and November’s Autumn Statement, and HMRC has invited comments by 3 February 2016.
Full details of the draft legislation are available here, but key topics include:
- The statutory exemption for trivial benefits in kind (£50 or less) has been confirmed to take effect from April 2016. There will be an annual cap of £300 for director/shareholders in close companies.
- Non-UK domiciled individuals: long term UK residents will be deemed UK domiciled for income tax and capital gains tax from April 2017. The draft legislation (including that which will deal with trusts) has not been published but is expected in early 2016.
- Pensions: confirmation that the lifetime allowance for pension contributions will be reduced to £1m from April 2016.
Separately, the Government has issued its promised “Call for Evidence” with regard to the tax treatment of employer provided living accommodation. For further details, please see Nick Bustin’s recent article.