Tax exemptions for employer provided Pensions and Legal advice

10 May 2017

A number of clauses were removed from the Finance Bill including the new Income Tax exemption to cover the first £500 worth of relevant pensions advice provided to an employee.

For general information and for those employers who may have already included the exemption in their benefits packages, we have received an update from HMRC.

The changes for employer provided Pensions advice and Legal advice (clauses 12 and 13 in the Finance Bill 2017 published on the 20 March) were due to be legislated in the Finance (No.2) Bill 2016-17. Due to the forthcoming election the Financial Secretary to the Treasury announced that, as is usual at this stage before an election, the Finance Bill would proceed on the basis of consensus and the government would not be proceeding with a number of clauses in the Bill, including these changes.

The Financial Secretary also said there has been no policy change and the government would legislate for the provisions at the earliest opportunity in the next Parliament. It will be for the incoming government to decide what to recommend to Parliament.

In the interim please continue to apply the guidance published at HMRC guidance  - EIM 21802 and HMRC guidance - EIM 30509.