47881_Budget_2015_Web_Accessible

2.71 Armed Forces Early Departure Scheme – As announced at Autumn Statement 2014,the government will legislate to ensure that lump sum payments made under the new ArmedForces Early Departure Payments Scheme are exempt from Income Tax and disregarded fromClass 1 National Insurance contributions. This change will take effect from 1 April 2015, whenthe new scheme is introduced. (Finance Bill 2015)2.72 Tax exemption for councillors’ travel expenses – As announced at AutumnStatement 2014, legislation will be introduced to exempt from Income Tax travel expensespaid to councillors by their local authority. The exemption will be limited to the ApprovedMileage Allowance Payment (AMAP) rates where it applies to mileage payments. There will be acorresponding disregard from Class 1 National Insurance contributions. These changes will haveeffect from 6 April 2015. (Finance Bill 2015)2.73 Non domiciles: increasing the remittance basis charge – As announced at AutumnStatement 2014, legislation will be introduced in Finance Bill 2015 making changes to thecharges paid by non-domiciled individuals resident in the UK who wish to claim the remittancebasis of taxation. From April 2015, a new annual charge of £90,000 will be introduced forindividuals who have been resident in the UK in at least 17 of the last 20 years, and the chargepaid by individuals who have been resident in the UK in at least 12 of the last 14 years willincrease from £50,000 to £60,000. (Finance Bill 2015) (u)2.74 Class 2 National Insurance contributions (NICs) – As part of the planned reformsto tax administration, the government will abolish Class 2 NICs in the next Parliament and willreform Class 4 to introduce a new contributory benefit test. The government will consult on thedetail and timing of these reforms later in 2015.2.75 Venture capital schemes: changes to scheme rules – The government will, subject toand with effect from the date of state aid clearance:••require that all investments are made with the intention to grow and develop a business••require that all investors are ‘independent’ from the company at the time of the first shareissue••introduce new qualifying criteria to limit relief to companies where the first commercial saletook place within the previous 12 years; this rule will apply except where the total investmentrepresents more than 50% of turnover averaged over the preceding 5 years••cap the total investment a company may receive under the Enterprise Investment Scheme(EIS) and Venture Capital Trusts (VCT) at £15 million, or £20 million for companies that meetcertain conditions demonstrating that they are ‘knowledge intensive’••increase the employee limit for knowledge intensive companies to 499 employeesThe government will, with effect from 6 April 2015, remove the requirement that 70% of SeedEnterprise Investment Scheme (SEIS) money must be spent before EIS of VCT funding can beraised (Finance Bill 2015) (20)2.76 Venture capital schemes: new industry forum – The government will launch a newindustry forum on the operation and use of the venture capital schemes.2.77 Venture capital schemes: renewable energy – As announced at Autumn Statement2014, companies benefiting substantially from subsidies for the generation of renewable energywill be excluded from also benefiting from EIS, SEIS and VCTs with effect from 6 April 2015,with the exception of community energy generation undertaken by qualifying organisationswhich will in future become eligible for the Social Investment Tax Relief (SITR). The governmentwill allow a transition period of 6 months following state aid clearance for the expansion of SITRbefore eligibility for EIS, SEIS and VCT is withdrawn. (Finance Bill 2015) (y)Budget 201577