Legislation to bring in the tax measures set out in last week and last year’s Budgets has been published by the Government.
The bill’s explanatory notes set out the cut in the top rate of tax to 45p from April 2013, reducing the level at which individuals start paying the 40p tax rate to from £35,000 to £34,370 from April 2012 as well as the changes to stamp duty, the personal allowance and caps on income tax relief.
It also contains measures to tighten up rules around income tax avoidance on life insurance policies, stamp duty and inheritance tax by using offshore trusts.
Around 75 per cent of the bill is made up of measures announced at last year’s Budget, including the rise in the the income tax personal allowance to £8,105 from April 2012.
Treasury exchequer secretary David Gauke says the measure in the bill demonstrate the Government’s commitment to rewarding work, simplifying the tax system and tackling the nations debt.
He says: “The measures in this bill will create a tax system which supports a strong economy and promotes a fair society. In other words, a tax system that works for Britain.”