Nov 24, 2016
The personal allowance will increase to £11,500 from 6 April 2017 and the point at which the higher rate of income tax will apply will increase to £45,000 from 6 April 2017.
By the end of this parliament the government will meet its commitment to increase the personal allowance to £12,500 and the point at which the higher rate of income tax will apply will rise to £50,000.
However this may not be passed on to Scottish Taxpayers.
Money purchase annual allowance
The money purchase annual allowance will be reduced from £10,000 to £4,000 from April 2017. The aim of this change is to minimise the recycling of pension savings. The government are consulting on the detail of this.
A consultation on the options for tackling pension scams including pensions cold calling will shortly be published. It is hoped this will give firms increased powers to stop suspicious transfers and abuse of small self-administered schemes.
If someone cold calls you in respect of your pension then simply hang up and do not get into dialogue with them.
From April 2017 the income tax and National Insurance benefits of salary exchange schemes will be removed for some arrangements. This change will exclude arrangements in respect of pensions as well as advice, childcare, Cycle to Work and ultra-low emission cars. Arrangements in place before April 2017 will be protected until April 2018 and arrangements for cars, accommodation and school fees will be protected until April 2021.
The tax treatment of foreign pensions will be more closely aligned with UK pension tax rules for UK residents. Foreign pensions and lump sums will be taxed in the same way as UK pension schemes for anyone returning to the UK. The government will also close specialist pension schemes for those employed abroad to new savings.
Insurance premium tax
The rate of insurance premium tax will increase from 10% to 12%. This increase will take effect in June 2017.
This is by no means a full assessment but if you require any clarification on how any of this effects you please get in contact.