The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Draft legislation has been published in provision 3 on page 1 of the draft provisions for Finance Bill 2017 . Further details can be found in the tax information and impact note (TIIN) .
Comments are welcomed by 1 February 2016 and should be sent to: employmentincome.policy@hmrc.gsi.gov.uk or
Employment Income Policy team Personal Tax: Customer, Product and Process HM Revenue and Customs Room 1E/08 100 Parliament Street London SW1A 2BQ
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Exemption from Income Tax for employer-provided pensions advice 7 December 2016
Draft legislation has been published which introduces a new income tax exemption to cover the first £500 worth of pensions advice provided to an employee.
A clause introduces a new income tax exemption to cover the first £500 worth of pensions advice provided to an employee (including former and prospective employees) in a tax year. The measure will take effect from 6 April 2017
Geographical extent – The changes extend to all four nations of the UK. The draft legislation details the legislative amendments required for both Great Britain and Northern Ireland.
The change will allow advice not only on pensions, but also on the general financial and tax issues relating to pensions, allowing individuals to make more informed decisions about saving for their retirement.
The changes replace existing provisions which limited the exemption solely to pensions advice and was capped at £150 per employee per year.
Draft legislation has been published and is available on page 7 . A tax information and impact note (TIIN) is also available and the explanatory notes can be read on page 24 .
If you have any questions about this change, or comments on the legislation, please contact the Employment Income Policy Team by email: employmentincome.policy@hmrc.gsi.gov.uk
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Assets made available without transfer of ownership 8 December 2016
Draft legislation has been published which amends the rules for calculating the taxable value of an asset provided to to an employee for their private use.
Draft legislation has been published in provision 5 on page 5 of the draft provisions for Finance Bill 2017 which will make changes to Chapter 10 of Part 3 of ITEPA to introduce specific rules for computing the cash equivalent of an asset that is made available to an employee for private use. Setting the cash equivalent of an asset by its availability for private use appears elsewhere in the benefits legislation and is well understood. The overarching rule that if the asset is made available for private use the cash equivalent is set at 20% of the market value when the asset was first provided plus the amount of any additional expense will remain. The legislation will introduce new rules allowing the cash equivalent to be reduced for days when the asset is not available for private use and there are also rules to reduce the level of the taxable benefit when the asset is made available to more than one employee for their private use in the same tax year.
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