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BUDGET

16 MARCH 2016

Employee benefits

Voluntary payrolling will be extended to non-cash vouchers and

credit tokens from April 2017. Employers must use any specific

statutory provisions for calculating the tax charge on benefits-in-

kind. The exemption for trivial benefits (usually up to £50) will

be introduced as planned from April 2016, with a corresponding

NIC exemption later in the year. The changes to travel and

subsistence expenditure for workers engaged through an

employment intermediary will be legislated as planned in Finance

Bill 2016, but the government has decided after consultation not

to make further changes.

Off-payroll working in the public sector

From April 2017, public sector bodies and agencies will be made

responsible for operating the tax rules for individuals who work

in the public sector off-payroll through limited companies.

Loans to participators

The loans to participators tax rate will be increased from 6 April

2016 to 32.5%, keeping it aligned with the higher rate of tax

charged on dividend income.

Non-domiciles

Non-UK domiciled individuals who become deemed UK domiciled

in April 2017 will be able to treat the cost base of their non-UK

assets as being their market value on 6 April 2017. There will be

transitional provisions for those who become deemed domiciled

under the 15 out of 20 years rule. This is intended to provide

certainty on how amounts remitted to the UK will be taxed.

Employee management incentive (EMI)

A rights issue related to shares received on the exercise of an

EMI share option will be treated in the same way as other rights

issues for the purpose of identification. The new shares will be

treated as acquired at the same time as the original shares.

Disguised remuneration

The reliefs under the disguised remuneration rules will be denied

where they have been used as part of a tax avoidance scheme

entered into after 15 March 2016. Following consultation

think ahead

The tax rules for non-

doms are due to change

significantly in April 2017.

Take advice now for

possible ways to save tax.

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