Finance Bill confirms retrospective MPAA reduction

In the second version of the 2017 Finance Bill, out on Friday, the Treasury said savers who have accessed their pension will see their annual tax-free allowance cut from £10,000 to £4,000 for the 2017/18 tax year. The changes were due to take effect from April but were halted by the announcement of the snap general election, which took place in June. They will now be implemented retrospectively. The bill also confirmed cuts to the tax-free dividend allowance from £5,000 to £2,000 from April 2018. The policy will reduce the tax differential between the employed and self-employed and is...