Finance Bill receives Royal Assent
The Finance Bill 2016 received Royal Assent on 15 September 2016 following agreement by both Houses on the text of the Bill. The Bill is now an Act of Parliament (law) known asFinance Act 2016. The Bill contains the legislation for many of the tax measures that had been announced by the Government at Budget 2016, Autumn Statement 2015 and Summer Budget 2015.
This includes an increase in the personal tax allowance to £11,500 and the income tax higher-rate band to £45,000 for 2017-18. The Act also brings about the reduction in the Capital Gains Tax (CGT) rates for standard rate taxpayers to 10% (from 18%) and for higher rate taxpayers to 20% (from 28%) that came into effect on 6 April 2016. The new rates do not apply to the sale of residential property that does not qualify for private residence relief. CGT due on the sale of residential property is effectively taxed at the old CGT rates.
The Finance Act also legislates for the new lower Corporation Tax rate of 17% from 2020 as well as the introduction of the new apprenticeship levy which will commence in England from 6 April 2017. There are many more measures included within the Finance Act which runs to an astounding 648 pages!