Autumn Statement 2016:
Autumn Statements to be Abolished!
The new Chancellor has just sat down from delivering his first and last Autumn Statement speech.
Based on the speech, the main tax and savings points referred to were as follows:
- The income tax personal allowance is to rise to £11,500, in April 2017, from £11,000 currently
- The National Living Wage will rise to £7.50, in April 2017, from £7.20 currently
- Free child care is to be extended to 30 hours from September 2017
- A new savings bond earning 2.2% will be issued through NS&I from March 2017
- There will be further support for home ownership via the Help to Buy ISA and Help to Buy Equity Loan Scheme
- As previously announced, the proposed changes to the carry forward of losses and interest deductions for large corporates will take effect from April 2017
- Corporation Tax will fall to 17% in April 2020 as previously announced
- Employees and Employers National Insurance thresholds will be aligned from April 2017
- Insurance Premium Tax is to rise from 10% to 12% from June 2017
- A consultation will take place on incorporation and taxation of self employment to make the taxation of individuals performing the same work fairer
- Letting agents’ fees, charged direct to tenants, are to be banned
- The planned fuel duty rise will be cancelled for the seventh successive year
- 100% capital allowances will become available for the installation of electric vehicle charging infrastructure
- Salary sacrifice schemes are to be removed from April 2017 with the exception of arrangements relating to pensions, childcare, cycle to work and low emission cars
- Measures will be taken to stop ‘inappropriate use’ of the VAT Flat Rate Scheme
- The tax advantages of Employee Shareholder Status are to be removed
- From 2018, there will be a spring statement to respond to the Office of Budget Responsibility
- Budgets will take place in the autumn to allow for greater scrutiny and clarity of the budget
This is very much an overview of what the Chancellor said and more details will be available in the press releases on which we will report in due course. If you do require any further information at this stage please contact our Tax Director Jenny Marks.
To see our other news items please visit our Muras Baker Jones – Blog.