Finance Bill introduces previously withdrawn tax changes

Several tax changes that had been withdrawn earlier this year have been re-introduced in the autumn’s Finance Bill.

The Bill covers taxation of termination payments, tax relief for pensions and legal advice, and limits on making good on benefits-in-kind, among other provisions.

Starting in the 2018/19 tax year, employers will be required to pay national insurance contributions on taxable termination payments of more than £30,000.

Employees will receive an increased tax exemption of up to £500 per year for obtaining pensions advice from 6 April 2017, up from £150 previously.

Deductions for the cost of legal expenses covered by an employer will also be more widely available to employees, including for expenses dating back to 6 April 2017.

For tax years 2017/18 and onwards, non-payrolled benefits-in-kind must be made good by the 6 July after the tax year for which they can be attributed.

This means an employee must pay for the benefit, often at a reduced cost, by the deadline to claim the tax reduction.

The Government has also introduced lower tax bands for ultra-low emission vehicles, to take effect in 2020/21.

The Bill contains a number of changes to tackle tax avoidance by organisations and individuals.