The Treasury has published its second Finance Bill of 2017 to legislate for proposals made in this year’s Budget that were abandoned when the Government called June’s General Election.
Key announcements include:
The money purchase annual allowance reduces to £4,000 (currently £10,000) from 6 April 2017. This limits the amount of pension contributions that can be paid by some individuals who have begun drawing benefits from their money purchase pension.
The dividend tax allowance reduces to £2000 (currently £5,000) from 6 April 2018. This will reduce the amount of dividends an individual can receive before they incur a tax liability.