On 27 May 2015 the UK government’s legislative program for 2015/16 was announced in the traditional Queen’s Speech at the opening of parliament.
The program includes proposed legislation to prohibit increases in the rates of income tax, national insurance and value added tax (VAT) for the next five years. There would also be a freeze on working age benefits, tax credits and child benefit for two years from 2016/17.
The UK government intends to pass legislation to ensure that the annual personal allowance for income tax increases in line with the minimum wage rather than with inflation. The aim is that anyone working for thirty hours a week on the minimum wage will not need to pay income tax. The personal allowance will reach GBP 12,500 by 2020.
In another significant move the Scottish parliament is to receive more powers to set its own taxes.
Although there was no specific mention in the Queen’s Speech of further measures to combat tax avoidance the UK has already implemented a diverted profits tax with effect from 1 April 2015 and the UK tax administration is closely following the OECD/ G20 action plan on base erosion an profit shifting (BEPS).
A second budget for 2015 is to be announced by the new government on 8 July 2015.
