View more on these topics

Govt claims MPAA cut will still go ahead

Parliament-UK-London-Thames-Building-700x450.jpg

The Government says it still plans to go ahead with cuts to the money purchase annual allowance and dividend tax nil-rate band despite delays to the policy.

In a House of Commons debate today, MPs are debating a condensed version of the Finance Bill.

The Government had announced it would oppose the clauses in the bill that would have introduced the reduction in the MPAA from £10,000 to £4,000 and a reduction in the dividend tax nil-rate band from £5,000 to £2,000 – which would either delay or drop the measures completely.

However, the Government said in the debate it had not changed course on the policies, and would make the changes “at the earliest opportunity”.

Treasury financial secretary Jane Ellison said: “The Finance Bill is proceeding on the basis of consensus, and at the request of the opposition we are not proceeding with a number of clauses in this bill.

“As we know, these changes make a significant contribution to the public finances and the Government will legislate for the remaining provisions at the earliest opportunity at the start of the new Parliament.”

Alluding to the snap general election, Ellison said some measures would be delayed until the new Parliament “in light of the pressures that now apply”.

Labour MP Peter Dowd said he “fully concurred” with the need for consensus on the bill and that the party had been preparing to work through a condensed bill “for several weeks”.

Dowd also suggested the snap election was behind the delays to some parts of the bill.

He said: “The Prime Minister’s announcement at Number 10 and of course the subsequent vote that succeeded means we don’t have sufficient time in this Parliament to give the full bill the proper parliamentary oversight it requires and deserves.

“It’s clear obviously [people] were unaware of the Prime Minister’s plans for a snap election, otherwise they wouldn’t have introduced the longest Finance Bill.”

Recommended

7

Govt looks to delay MPAA cut and dividend tax changes

The Government looks set to delay a raft of key reforms including the reduction in the money purchase annual allowance, pensions advice allowance and tax-free dividend allowance cut. In a House of Commons session on amendments to the Finance Bill which would have introduced the cut, the Government has signalled its intention to oppose clause […]

5

Govt ducks the question on state pension triple lock

Prime Minister Theresa May and Chancellor Philip Hammond have both refused to commit to maintaining the state pension triple lock as the election campaign gets underway. The Daily Mail reports at a campaigning event in her Maidenhead constituency, May avoided giving a firm answer on whether the triple lock, which sees pensions rise by wages, […]

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg
2

Govt halts probate fees increase amid election pressure

The controversial planned increase to probate fees will now be a matter for the new Government, as the Ministry of Justice says there is no time to complete the change before the snap election. It was proposed the flat rate probate fee of £215, or £155 if using a solicitor, would change to a tiered […]

Retirement - thumbnail

A downhill stroll?

The Department for Work and Pensions (DWP) has recently published new research, which once again demonstrates how the prospect of retirement is changing for older workers.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment