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CPD: Personal tax

The latest edition of Newsbrief counts as 1 hour of structured CPD and covers the regulatory and marketplace changes that took place during May 2014. Visit the Money Marketing CPD Centre to answer 10 multiple choice questions and complete this CPD activity. Just click into your CPD Plan and you’ll find each month’s marketplace changes round-up in your activity list.

June CPD Newsbrief — Personal tax

Personal tax

MPs raise hue and cry over HMRC tax recovery powers

Steve Tolley

Government plans to allow HMRC to recover debts from people’s bank accounts would be “wholly unacceptable” without prior independent oversight, the Treasury select committee has warned.

In May, HMRC published its consultation on the direct recovery of debts power set out in the Budget. It proposes allowing HMRC to recover debts of more than £1,000 directly from bank accounts, including ISAs, as long as at least £5,000 is left in the account.

The Treasury select committee says: “The Chancellor argues this measure can be justified because the Department for Work and Pensions [DWP] already has the right to take money directly from people’s bank accounts to pay child maintenance. However, the parallel is not exact: in those cases, DWP is acting as an intermediary between two individuals. HMRC would be acting not as an intermediary between two individuals but rather in pursuit of its own objective of bringing in revenue for the Exchequer.”

MPs also argue that the increased flexibility to savings brought about by changes announced in the Budget to pensions and ISAs will mean the two will become “increasingly interchangeable”, and so the government should set out details on how it intends to tax savings in the future.

Andrew Tyrie, the Treasury select committee chair, said: “There may be scope in the long term for bringing the tax treatment of savings and pensions together to create a ‘single savings’ vehicle that can be used — with additions and withdrawals — throughout working life and retirement. This would be a great prize. For too long, double taxation has discouraged some forms of saving.”

June Newsbrief

The latest edition of Newsbrief counts as 1 hour of structured CPD and covers the regulatory and marketplace changes that took place during May 2014. Visit the Money Marketing CPD Centre to answer 10 multiple choice questions and complete this CPD activity.

Just click into your CPD Plan and you’ll find each month’s marketplace changes round-up in your activity list.

Not yet registered? Join for free today at www.ifacpd.com and access more than 35 hours of independent, accredited CPD learning content. 

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