The Queen failed to clarify the Finance Bill as she gave little clarity on the government’s tax reforms for the next year.
In a notable part of the Queen’s Speech on Wednesday, the UK government said it would issue a Summer Finance Bill to “include a range of tax measures including those to tackle avoidance.”
“The program will also include a technical bill to ratify several minor EU agreements and further bills, which will be announced in due course, to effect the UK’s withdrawal from the EU. The government will also be taking forward a range of other measures which may not require primary legislation,” it said.
Financial experts were hoping for some clarity in the Queen’s Speech. These involved policies such as the new non-dom laws and cuts to the Money Purchase Annual Allowance (MPAA), which is set to occur in April 2017.
On the other hand, Rachael Griffin, tax and financial planning expert at Old Mutual Wealth, said: “Several policies remain in limbo as the fate of the Finance Bill remains in the air.”
Tom Selby, a senior analyst at AJ Bell, requested on the government to provide “urgent clarity” on plans including the Spring Budget project to slash the present tax-free dividend allowance from £5,000 to £2,000 by 2018.
“With all the noise surrounding Brexit negotiations, it’s easy to forget vital domestic personal finance reforms need addressing. In particular, we now need urgent clarity on how the Money Purchase Annual Allowance cut will be applied and whether the proposed dividend allowance reduction will still be introduced in April next year. This legislation is likely to be swept up in a new Finance Bill this year,” he said.