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The Finance Bill 2021-22 was published today legislating for
tax changes announced at the Budget
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The Bill supports the Budget which will deliver a stronger
economy for the British people through driving growth,
securing public finances and levelling up employment
opportunities
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Changes taking effect also crack down on tax avoidance and
deliver a simpler tax system
It will extend tax reliefs for museums, galleries, theatres and
orchestras, implement the new residential property developer tax,
and introduce reforms to tonnage tax, among other changes.
Many changes will come into effect for the next tax year starting
in April 2022.
Financial Secretary to the Treasury said:
This year’s Finance Bill will help us to continue on our mission
to deliver a stronger economy for the British people – through
stronger growth, jobs and public finances.
The Finance Bill 2021-22 brings forward a number of tax measures
from last week’s Budget. The Bill helps support a stronger
economy for the British people by helping to deliver stronger
public finances, tackling tax avoidance and evasion, and
contributing towards a simpler and more sustainable tax system.
It does this through:
- Reforming the UK’s Tonnage Tax regime to bring more shipping
firms to the UK
- Extending tax reliefs for museums, galleries, theatres and
orchestras to 31 March 2024
- Extending the £1 million Annual Investment Allowance cap by a
further 15 months to 31 March 2023, to bring forward investment
- Implementing the 4% Residential Property Developer Tax on the
largest most-profitable residential developers to support
building safety remediation
- Simplifying Basis Period Rules to make it easier for the
self-employed and small businesses to claim tax reliefs they are
entitled to but often do not take advantage of due to confusing
current rules. This, as the OBRconcludes, has no effect
on the amount of profits taxed.
- Clamping down on promoters of tax avoidance by reducing the
scope for promoters to market tax avoidance schemes, disrupting
their activities and supporting people more to steer clear of and
leave tax avoidance arrangements
- Increasing the Normal Minimum Pension Age from 55 to 57,
effective from 6 April 2028
The Overview of Tax Legislation and Rates (OOTLAR) document,
published at Autumn Budget 2021, confirmed the measures going
forward in the Bill.
The Finance Bill 2021-22 had its First Reading in Parliament on
Tuesday 2 November and will now follow the normal passage through
Parliament.
Further information
