Key Facts

• The tapered annual allowance thresholds are raised by £90,000 each.
• The minimum annual allowance is lowered to £4,000 from April 6th, 2023.
• Up to 98% of NHS consultants will be outside the scope of the tapered tax allowance based on NHS earnings alone.
• These measures cost over £2 billion over the next five years.
• A third of doctors have reduced working hours due to pension taxation changes.
• Up to 37% plan to reduce their hours in the next year.
• The tapered annual allowance creates a tax cliff edge for those earning over £110,000 in defined benefit schemes.
• Some face additional tax charges of up to £13,500.
• In 2018, almost 4,000 serving military personnel received notifications about exceeding their annual allowance limits.
• The new clause requires a review of changes made to entrepreneur’s relief by section 22 and Schedule 2 of this Act.
• The review must consider effects on business investment, employment, and productivity.
• A report must be laid before the House of Commons within six months after the passing of this Act.
• The lifetime limit for gains eligible for relief is reduced from £10 million to £1 million.
• Three quarters of last year's relief cost was claimed by just 6,000 people disposing of assets with gains over £1 million.
• The changes will raise an estimated £6 billion over the next five years.
• New clause 8 would require the Chancellor to review the impact within six months of passing the Finance Act.
• The entrepreneurs' relief cost £2.1 billion in 2019-20 alone.
• The lifetime limit for entrepreneurs’ relief was increased to £5 million and then to £10 million post-2010.
• In 2017-18, three quarters of the £2.3 billion cost of entrepreneurs' relief benefited only 5,000 individuals with an average tax saving of £350,000 each.
• Entrepreneurs’ relief was reduced from £10 million to £1 million.
• The Government conducted an internal review of entrepreneurs' relief, not in public domain.
• FSB described the compromise as a 'sensible approach.'
• R&D tax credits are expensive but seen as providing considerable public gain.
• Reduction in final period exemption for capital gains tax from 18 months to nine months.
• Lettings relief will only apply where the owner shares occupancy with a tenant.
• The change is set to take effect from April 2020.
• The nine-month period exemption for private residence relief was based on an average selling time before the pandemic of approximately four and a half months.
• According to Zoopla research, 41% of would-be home movers in Britain have put their property plans on hold due to market uncertainty and financial concerns.
• Property inquiries are reported to be more than 50% down compared to pre-lockdown levels.
• Changes to corporation tax loss relief rules were announced at Budget 2018.
• The corporate capital loss restriction applies a 50% reduction to carried-forward capital losses from April 1, 2020.
• The change will raise approximately £765 million in additional revenue over five years.
• Less than 1% of companies are expected to pay additional tax due to these changes.
• Schedule 3 introduces corporate capital loss restriction changes.
• The schedule extends to 18 pages with explanatory notes spanning 10 pages.
• Clause 25 addresses payment instalments for corporation tax due to asset disposals from non-resident companies.
• A new study from the Scottish Government indicates that Scottish GDP could be up to 1.1% lower after two years if an extension is not agreed upon.
• The cumulative loss of economic activity from leaving the EU would be up to £3 billion over those two years.
• Analysis shows that a free trade agreement with the US would increase UK GDP by only up to 0.16%, while losing friction-free trade with the EU could lower GDP by 6.1% by 2030.
• The change applies to loans made to traders located anywhere in the world since January 24, 2019.
• The European Commission issued a reasoned opinion on January 24, 2019, arguing that existing legislation contravened free movement of capital principles.
• No significant impact on the Exchequer is expected due to the small number of people making these loans.
• The clause aims to extend capital gains tax relief to borrowers outside the UK.
• Clause 26 complies with article 63 of the treaty on the functioning of the European Union and rules on the free movement of capital.
• The Government are in their fourth round of trade negotiations with the EU.