Simplification of pensions
Technical changes will be made to the simplified pension regime that will operate from 6 April 2006. There is also to be fresh consultation on the anomalies arising from the different treatment of scheme pensions and lifetime annuities in the calculation of pension commencement lump sums.

Outplacement counselling
The current income tax exemption for outplacement counselling and retraining expenses for full-time employees who lose their jobs will be extended to part-time employees with effect from 6 April 2005.

Company car and fuel benefit
The CO2 emissions level qualifying for the minimum petrol percentage charge (15%) will be 140g/km for 2005/06, 2006/07 and 2007/08.

The figure for the company car fuel benefit charge will remain unchanged at £14,400 for 2005/06.

Computer and bicycle exemptions
From 6 April 2005, there will be no income tax charge if an employee pays the market value to buy computers or bicycles previously loaned to them by their employer. The change reverses existing legislation that can give rise to a tax charge where assets are transferred to an employee and have previously been provided as benefits in kind.

Payments to employees at universities and technical colleges
From 1 September 2005, payments of up to £15,000 (previously £7,000) for an academic year can be made free of tax to employees for periods of attendance on full-time educational courses at recognised educational establishments. From the same date, such payments will also be free of Class 1 national insurance contributions regardless of whether they have been made under a training contract or an employment contract. The changes relate to the 2005-06 and subsequent academic years.

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