The Treasury is announcing new measures to curb tax avoidance in the second Finance Bill of this year, which also promises to make tax fairer by removing anomalies. Specific plans include new penalties for those who help firms or individuals use tax avoidance schemes that are successfully challenged by HMRC, changes to rules concerning company interest expenses to stop big firms using large interest payments to cut their tax bills and new changes aimed at stopping individuals using avoidance schemes to cut their tax bills.
Other measures aimed at ensuring fairness include the abolition of permanent non-dom status, cutting the Dividend Allowance from £5,000 to £2,000 and trimming the Money Purchase Annual Allowance from £10,000 to £4,000. The last of these means the extent to which pensions can be recycled to gain tax relief will be reduced.
Commenting on the plans, Financial Secretary to the Treasury and Paymaster General Mel Stride said: "The UK is a world leader in tackling tax avoidance and evasion, but we must continue to take action to ensure everyone pays their fair share."