The FRC will also be asked to work with the business community and the government to develop a voluntary set of corporate governance principles for large private companies.
The government intends to bring legislative reforms into effect by June 2018.
Full details of the reforms can be found in the full press release .
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Second Finance Bill 2017 published 12 September 2017
The second Finance Bill of 2017 has been introduced to parliament which includes provisions that were removed from the pre-general election Bill published on 8 June 2017.
Clauses that were removed prior to the general election include:
Taxable benefits: time limit for making good This clause introduces a date for ‘making good’ on benefits-in-kind which are not accounted for in real time through Pay As You Earn (PAYE). The date is 6 July following the end of the tax year in which the tax liability of the benefit-in- kind arises. The date has effect for benefits-in-kind which give rise to a tax liability for the tax year 2017-18 or any subsequent tax year. Taxable benefits: ultra-low emission vehicles This clause amends the appropriate percentage for ultra-low emission vehicles (cars with CO2 emissions of 0-75 grams per kilometre) for the purpose of calculating the taxable benefit of a company car. It also makes related changes to the appropriate percentage for conventionally fueled cars. The changes have effect for the tax year 2020-21 and subsequent tax years. Pensions advice This 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. It 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. The amendment takes effect for the tax year 2017- 18 and subsequent tax years. Legal expenses etc This clause extends existing reliefs for employees (or former employees) who may require legal advice or indemnity insurance which is funded by their employer. Currently, such costs are only deductible from earnings for employees who have had allegations made against them in their capacity as an employee (a liability). This clause provides equivalent deductions to be available in relation to proceedings where no allegation has been made or is expected to be made against the employee, for example, where an employee is asked to give evidence before a public hearing when they might also require legal advice and support. It also extends the reliefs for individuals on termination of employment (or for individuals now deceased) so that a deduction is allowable if the relevant costs are met by the employer on behalf of the individual. The amendment takes effect for the tax year 2017-18 and subsequent tax years. Termination payments etc: amounts chargeable on employment income This clause introduces amendments to tighten and clarify the income tax treatment of termination payments. The measure has effect for the tax year 2018-19 and subsequent tax years. PAYE settlement agreements This clause amends the provisions of Chapter 5 of Part 11, Income Tax (Earnings and Pensions Act) 2003 (ITEPA). It removes the need for PAYE settlement agreements (PSAs) to be agreed with an officer of HM Revenue & Customs (HMRC). The clause arranges for the amendment to have effect from the tax year 2018/19 and subsequent tax years. Money purchase annual allowance This clause reduces the money purchase annual allowance (MPAA) from £10,000 to £4,000 with effect from 6 April 2017. Individuals who flexibly access or have already flexibly accessed registered pension scheme savings will be subject to a £4,000 MPAA.
Measures also include:
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