The Government has today published the Finance Bill 2012 which includes measures which maintain the Government's strategy to reduce the deficit, while promoting tax reform, supporting growth and rewarding work.

Among the measures included are:
• increasing the tax-free personal allowance to £8,105 from April 2012;
• reducing the additional rate of income tax to 45%; from April 2013
• broadening the tax base while simplifying the tax system;
• tackling over £1bn of tax avoidance and evasion;
• cutting the corporation tax rate to 24% this year and 23% in 2013.

The Government says it has set about improving the way that tax policy is developed. As set out in the 2010 document Tax Policy Making: A New Approach, it has committed to consultation and scrutiny.

According to the Government, the Bill demonstrates this commitment. The measures in the Bill have, in the vast majority of cases, been through the tax policy making process:
• over 75% of the clauses in this year's Bill were announced at Budget 2011;
• over 400 pages of legislation for technical consultation were published in December 2011;
• and the Government has received over 450 comments.

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Treasury and Government officials have met with interested parties, considered their views and reacted to them. The Government says, for example, the changes made to the new Controlled Foreign Companies regime are the result of a year-long consultation

The Exchequer Secretary to the Treasury, David Gauke MP, said:
"This year's Finance Bill shows just how committed the coalition Government is to rewarding work, simplifying the tax system and tacking the nation's debts. The measures in this Bill will create a tax system which supports a strong economy and promotes a fair society. In other words, a tax system that works for Britain".

The Bill is formally known as Finance (No. 4) Bill as it is the fourth Finance Bill of the current Parliamentary session. On Royal Assent it will become Finance Act 2012.

More detailed Explanatory Notes on clauses are available from Stationery Office bookshops and also on HM Treasury website. Further details on the Bill will be published on the Parliament website: http://services.parliament.uk/bills/2010-12/financeno4.html and HM Treasury and HM Revenue & Customs websites as the Bill progresses through Parliament.

The New Approach to Tax Policy Making: a response to the consultation was published on 9 December 2010 and is available on the HM Treasury website.

The Explanatory Notes are published on the HM Treasury website http://www.hm-treasury.gov.uk/finance_bill_2012.htm