The second Finance Bill of 2017, published today (8
September), will make the tax system fairer by cracking down on
avoidance and evasion, and will bring in vital tax revenue needed
for public services.
Measures include:
- new penalties for those who enable the use of tax avoidance
schemes that are later defeated by HMRC
- an update on the rules around company interest expenses, to
ensure big businesses cannot use excessive interest payments to
reduce the amount of tax they pay
- changes to prevent individuals from using artificial schemes
to avoid paying the tax they owe on their earnings
, Financial Secretary to the
Treasury and Paymaster General said:
A fair tax system is a key part of our plan to build a fairer
society.
The UK is a world leader in tackling tax avoidance and evasion,
but we must continue to take action to ensure everyone pays
their fair share. The Finance Bill will allow us to do just
that by preventing companies and individuals from using
complicated tax structures to avoid paying the tax they owe,
and penalising people that help them to do it.
Measures in the Finance Bill build on the government’s successful
track record. Since 2010, HMRC has secured over £160 billion in
additional tax revenue as a result of tackling avoidance, evasion
and non-compliance – helping the UK to achieve one of the lowest
tax gaps in the world.
This Finance Bill also addresses a number of imbalances in the
system, ensuring that everyone pays their fair share of tax by:
- abolishing permanent non-dom status, so that those who have
lived here for years – and in some cases for their entire lives –
pay tax in the same way as UK residents
- reducing the dividend allowance from £5,000 to £2,000 from
April 2018, limiting the difference in tax treatment between
those who work through their own company, and those who work as
employees or self-employed, whilst ensuring that support for
investors is more effectively targeted
- reducing the Money Purchase Annual Allowance from £10,000 to
£4,000, limiting the extent to which people can recycle their
pension savings to get extra tax relief
