The Bill will legislate for tax changes announced at Budget
2018.
, Financial Secretary to
the Treasury, said:
“This is a Finance Bill that rewards the hard work of the
British people, allowing people to keep more of what they earn
and their incomes to go further. It makes sure we have a fair
and sustainable tax system and backs business by introducing a
new capital allowance, to help them grow, invest and create
more jobs”
This Finance Bill gives people more help with the cost of
living by:
- Letting people keep more of the money they earn by raising
the personal allowance to £12,500 and the higher rate threshold
to £50,000 in April 2019, a year earlier than planned.
- Extending first-time buyers’ relief to those purchasing
shared ownership properties.
- Freezing beer, cider and spirits duty.
This government has consistently backed business, including
reducing the Corporation Tax rate to the lowest in the G20. But
we know that increasing investment and productivity is the key
to maintaining our economic success and creating more good jobs
across the whole country. This Bill works to ensure that by:
- Introducing a new capital allowance for qualifying
non-residential structures and buildings, supporting business
investment.
- Increasing the Annual Investment Allowance to £1 million
for two years, providing support to UK firms to invest and
grow.
- Introducing a ground-breaking transferable tax history
mechanism for late-life oil and gas fields, encouraging new
entrants and fresh investment for the North Sea basin.
Cracking down on tax avoidance and evasion to create a fair and
sustainable tax system enabled us to commit extra funding to
our public services at the Budget. This Bill takes further
action by:
- Making individuals or entities that reduce their tax bill
by holding intangible property in low-tax jurisdictions liable
to pay the tax they owe in the UK.
- Making non-residents liable for capital gains tax on the
sale of all immovable UK property.
- Introducing rules to prevent firms fragmenting profits
between unrelated entities to avoid tax.
- Changing the definition of "permanent establishment" to
crack down on those multinationals that attempt to erode the
tax base.
People’s hard work and our careful management have turned the
economy round since 2010:
- Over 3.3 million more people are in work, and unemployment
is at its lowest rate since the 1970s.
- Wage growth is at its strongest in 10 years.
- The deficit has been cut by four-fifths, and debt has begun
its first sustained fall in a generation.
We will continue to act responsibly – following a balanced
approach to build a stronger, fairer economy.
Notes to editors
- The proposed Digital Services Tax announced in the Budget
will be legislated in next year’s Finance Bill.
