a new transferable tax allowance for married couples and civil partners that will benefit around 4.1 million couples in 2015.
The Bill will also legislate for next steps in the government’s drive to tackle tax avoidance and aggressive tax planning.
David Gauke, Exchequer Secretary to the Treasury, said:
“The government is committed to making the UK more competitive for business, supporting hardworking families with the cost of living and cracking down on aggressive tax avoidance. The package of measures in the legislation published today delivers action that builds on our efforts to create a tax system that supports growth and fairness. And by consulting on the draft legislation in this way we are delivering on our promise to make the system more certain and stable for taxpayers and businesses.” For the fourth year in a row, draft legislation has been published as part of the government’s commitment to a more transparent, efficient and simpler tax system. The consultation on draft legislation will run until 4 February 2014, with final details being confirmed in Budget 2014, and finally introduced in Finance Bill 2014.
The CIPP’s Policy Team will study this document and issue a survey to collect your views if appropriate.
Read the draft legislation
Finance Bill 2014 brings in new tax changes
1 April 2014
The government has published Finance Bill 2014 , legislation implementing tax changes announced during the last year.
The bill contains measures which demonstrate government’s commitment to a tax system that delivers its long-term economic plan by helping hardworking households, supporting growth and clamping down on tax avoidance and evasion, including: increasing the tax-free Personal Allowance to £10,000 in 2014-15 and legislating for a further increase to £10,500 from 2015-16 introducing a new transferable tax allowance for married couples and civil partners , allowing spouses in households where neither partner is a higher or additional rate taxpayer, and where one partner has not used up their full allowance, to pay tax on up to £1,050 less of their income from 2015-16 reducing the starting rate of income tax on savings from 10% to 0% , and extending the band to which it applies from £2,880 to £5,000. This will benefit around 1.5 million people, over a million of who, those with total incomes below £15,500, will pay no tax at all on their savings income taking the first steps towards bringing in the Budget’s major reforms to give individuals much greater choice about how they access their defined contribution pensions savings from April 2015. This means introducing measures that mean that over 400,000 people will be able to access their pension more flexibly : reducing the amount of secure income that individuals have to demonstrate before they can access their pension savings flexibly (the Minimum Income Requirement) from £20,000 to £12,000; increasing the annual limit for individuals in a capped drawdown arrangement from 120% of an equivalent annuity to 150%; and increasing the total pension wealth that can be taken as a lump sum from £18,000 to £30,000, and
CIPP Policy News Journal
16/04/2014, Page 281 of 519
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