As Parliament will be dissolved on the 3rd May in preparation for the forthcoming general election, some elements of the Finance Bill will not go ahead as planned. It was deemed there was insufficient time to get the Finance Bill in its entirety on to the statute book.
The following proposed changes will be delayed, the ultimate introduction of these changes will be dependent on the outcome of the election.
Reduced Money Purchase Annual Allowance (MPAA)
The MPAA will not now be cut from £10,000 to £4,000. This reduction would have affected those who have accessed their pension under the new pension flexibilities and wish to continue contributing to their pension.
Dividend Allowance Cut
The annual dividend allowance was set to be cut from £5,000pa to £2,000pa from April 2018. This would have affected everyone who receives a dividend.
This blog is not advice, if you need any assistance, please do not hesitate to contact one of the team on 0116 254 2255.