The Finance Bill 2016 passed through parliament in December 2015. This bill puts into law many of the measures announced by the Chancellor in his Budget and Autumn Statement speeches.
Important areas which were clarified:
- the annual investment allowance is £200,000 from 1 January 2016
- tougher rules tackling offshore tax evasion will be introduced
- large businesses will have to publish their tax strategies
- landlords will see the wear and tear allowance replaced by a new relief that allows them to deduct the cost they incur
- the personal savings allowance will see basic rate taxpayers not paying tax on the first £1,000 of savings income
- the pension lifetime allowance will reduced to £1 million from the 2016/17 tax year.