Finance Act 2004

From Wikipedia, the free encyclopedia

Acts of Parliament of predecessor states to the United Kingdom

Acts of Parliament of the Kingdom of England to 1601 Acts of Parliament of the Kingdom of England to 1659 Acts of Parliament of the Kingdom of England to 1699 Acts of Parliament of the Kingdom of England to 1706 Acts of Parliament of the Kingdom of Scotland Acts of Parliament of the Kingdom of Ireland

Acts of Parliament of the United Kingdom

1707–1719 | 1720–1739 | 1740–1759 | 1760–1779 1780–1800 | 1801–1819 | 1820–1839 | 1840–1859 1860–1879 | 1880–1899 | 1900–1919 | 1920–1939 1940–1959 | 1960–1979 | 1980–1999 | 2000–Present

Acts of the Scottish Parliament

Acts of the Northern Ireland Parliament

Acts of the Northern Ireland Assembly

Orders in Council for Northern Ireland

United Kingdom Statutory Instruments

Church of England Measures

The Finance Act 2004 is a piece of United Kingdom legislation.

One of the main changes introduced by the act was a change in the taxation of UK Pensions from April 6, 2006. Prior to the change many different taxation regimes applied to pension schemes depending on exactly what type of scheme it was. After the changes a single taxation regime was designed.

The principle of the new regime is that a pension fund will be tax-free provided it is below the life time allowance (which was set at £1.5m for the year from April 6, 2006). A second restriction was imposed limiting the maximum annual contribution into a pension scheme.

Whilst the new regime is simpler the need to provide transitional arrangement for pension scheme members whose existing entitlements exceed the new limits has resulted in the actual implementation being extremely complex.

The Act also introduced an income tax regime known as pre-owned asset tax which aims to reduce the use of common methods of inheritance tax avoidance.^[1]

[edit] References

1. ^ REV BN 40: Tax Treatment Of Pre-Owned Assets

[edit] External links

• Finance Act 2004