Tax and finance changes for 2017
A number of tax and finance changes are set to come into effect in the following months that could cause an impact for you or your business. Make sure you are prepared in order to take advantage of any opportunities. Here’s an overview of some of the changes set to take place in 2017; some of the changes are in the process of being legislated through parliament and may be subject to change.
Salary sacrifice schemes
The tax advantage will be removed for all salary sacrifice schemes from April 2017 except for the provision of pensions, vouchers and cycle to work schemes and ultra-low emission vehicles. Schemes in place before April 2017 will be protected from these changes until April 2018 with some protected until 2021.
From 1 April 2017, the rate of corporation tax will be cut to 19%.
100% rate relief will be available to businesses in England that occupy a single property with a rateable value of £12,000 or less from 1 April 2017.
Auto-enrolment staging dates
Pension auto-enrolment staging dates were determined for each UK employer based on the number of people in the largest PAYE used on April 1st 2012. Larger companies started enrolment in October 2012 and all UK employers will have staged by April 2017. Employers will continue the process of auto-enrolment in 2017.
The personal allowance and the higher rate threshold will rise to £11,500 and £45,000 respectively from 6 April 2017. The higher rate threshold in Scotland will be £43,430.
ISA annual limit
The limit for the 2016/2017 tax year is £15,240 and is the maximum amount you can deposit into your ISA. The ISA annual allowance limit will increase from £15,240 to £20,000 from 6 April 2017.
Money purchase allowance
Money purchase pension contributions, known as the money purchase annual allowance (MPAA), applies to individuals who have flexibly accessed their pension benefits. The money purchase allowance will be reduced from £10,000 to £4,000 from April 2017.
From 6 April 2017, any person resident in the UK for more than 15 of the past 20 years will be deemed UK domiciled for tax purposes.