The CIOT is urging the Government to drop the majority of the current Bill and keep only those measures essential to maintain the Government’s revenue raising capacity, such as renewing the provision of income tax, and other measures which are required urgently, such as anti-avoidance provisions. Measures dropped could be reintroduced in a post-election Finance Bill where they can be scrutinised at greater length.” As reported by the CIOT the selection of amendments for the Finance Bill committee stage debate shows that the government plan to remove a majority of the Finance Bill – 72 out of 135 clauses and 18 out of 29 schedules. - following discussions with the Opposition.
Amendments include the removal of changes to:
Taxable benefits: time limit for making good Taxable benefits: ultra-low emission vehicles Employer-provided pensions advice Termination payments PAYE settlement agreements.
Clauses dropped include those on Making Tax Digital and penalties for enablers of defeated tax avoidance schemes now.
The CIOT have compiled a very useful list of what is in and what is out of the Finance Bill; all of which should be confirmed by Friday 28 April 2017 when the Bill is expected to receive Royal Assent. Scroll down through this article to view the table of amendments.
We shall have to wait until after the general election to find out which clauses and schedules will be resumed.
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PLSA unveils pension priorities for party manifestos 8 May 2017
“A strong pensions sector is key to a strong economy” say the Pensions and Lifetime Savings Association (PLSA).
The PLSA has outlined its six priorities for pensions in the upcoming general election:
1. State Pension – The State Pension, set at its current value relative to average earnings, is affordable without further increases to the State Pension age. The triple lock has been valuable in raising the relative incomes of pensioners but, if it is maintained in future, it will add around 1% of GDP to the cost of the State Pension. A simpler, fairer and more affordable uprating mechanism should be introduced, linking to earnings growth, enabling the State Pension to keep pace with working age incomes, with a floor to protect against any periods when wages fall. Indexing in line with earnings will allow the State Pension to maintain its current value of around 30% of average earnings. 2. Automatic Enrolment - Automatic enrolment will deliver a real improvement for millions of people’s retirement incomes and the Government can build on this success. To do this, it is essential that minimum overall contributions increase to at least 12% of salary by 2030, with steps taken now towards this goal. The Government should also extend automatic enrolment to include 18-21 year olds, self-employed people and those in multiple jobs paying low salaries totalling £10,000 or more. 3. Defined Benefit - The UK’s DB pensions are underfunded, with around three million people having only a 50:50 chance of seeing their benefits paid in full. The Government should bring forward legislation to reduce burdens and enable pension schemes to share services or to merge, delivering better returns, saving money and improving governance. This will mean a greater chance of members receiving their benefits. It will free employers to focus on corporate growth and it will return public confidence to the system. 4. Pension Scams - Pension scams damage people’s retirement incomes. Under current law, the scheme trustees are powerless to stop the transfer even if they have grave concerns about the risks to the member involved. To protect people from pension scams, legislation should be introduced to establish an authorisation regime for pension schemes. An individual would only have the right to transfer to an authorised scheme.
5. Help at Retirement - Decisions made at retirement are some of the most important, yet difficult, decisions to make. The Government should make it easier for trustees to signpost good quality and good value schemes
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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