2017 Autumn Budget

27 November 2017

As the dust settles on the paperwork released following the Chancellor's Autumn Budget 2017 it is apparent that to ensure the country is prepared for every possible outcome during the Brexit negotiations the Chancellor chose not to make any significant changes.

Instead the Chancellor focused on reducing tax evasion and avoidance, and on the SDLT reduction for first time buyers.

Landlords once again took a few hits:

 -UK tax will be extended to gains on all UK land and buildings regardless of the residence of the owner with effect from April 2019.

- Non-resident property investment companies will in future be subject to corporation tax rather than income tax

- Index Allowance for companies to be frozen from January 2018.

Landlords will however again be able to benefit from a simplified claim for mileage rates rather than the actual costs of the relevant tavel.

In a surprise move it is no longer possible to buy Certificates of Tax Deposits (CTDs). These had been used for many years by taxpayers in dispute with HMRC as it would stop further interest accruing on disputed tax or potential liabilities.

Anti avoidance rules targeted at Offshore Trusts mean that from 6 April 2018 distributions ultimately passed to UK individuals will be subjected to UK tax.

Plans have been announced to extend the deadline for assessing tax on offshore non compliance to twelve years from the current four years.

From April 2019 there will be a requirement to withhold tax from royalty payments made by companies to low and non-taxed jurisdictions in connection with sales to UK customers. This could create significant administrative burdens for some companies.

From April 2019 HMRC will collect underpayment of tax more quickly by amending your tax code immediately rather than making the changes to the following tax year’s tax code.

On a more positive note the investment limits for the Enterprise Investment Scheme and Venture Capital Trusts have been increased.

The big giveaway is the SDLT giveaway for first time buyers. For purchases of property of up to £500,000 there will be no SDLT on the first £300,000, and a rate of 5% on the balance up to £500,000. Any property valued at over £500,000 will not qualify for any element of this relief.

For companies the rate of the Research & Development Expenditure Credit will increase from 11% to 12%.

Finally, there are to be a number of consultations looking into matters for future consideration, such as the extension of the off payroll working rules from the public to private sector, reform of the employment status tests, the extension of Entrepreneurs relief in certain circumstances where shareholding drops to below 5%, and taxation of the digital economy.

If you require any assistance with any aspect of your tax affairs please contact us or get in touch today by calling 0203 039 3993.

Budget Summary

22 November 2017

The Chancellor of the Exchequer stood up today at 12.39 and delivered his 2017 Autumn Budget.

The detail will be uncovered in the coming days and weeks once the draft legislation has been published. For now it appears the main tax headlines are:

  • Freezing the capital gains indexation allowance for companies from January 2018.
  • Leaving the VAT registration threshold at £85,000 for the next two years.
  • Fixed Rate Mileage allowances for landlords.
  • Targeted Anti Avoidance Rule (TAAR) re income and gains accruing to offshore trusts.
  • Clarification of partnership tax rules.
  • Increased limits or investments in EIS and VCTs.
  • No Benefit in Kind (BIK) for workers who charge their electric cars at work.
  • Further action to tackle disguised remuneration schemes.
  • Consultation on extending the Off working payroll reform to the private sector.
  • Increase the BIK diesel supplement from 3% to 4%.
  • SDLT relief for first time byers of properties up to £500,000.
  • Consultation on the taxation of modern working practices.

We are sure more hidden headlines will emerge in due course.  If you require any assistance with any tax matter please contact us or get in touch today by calling 0203 039 3993.

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