2016 Autumn Statement Summary
On Wednesday 23 November Philip Hammond presented his first (and last!) Autumn Statement (will become the Autumn Budget from 2017 onwards). The Chancellor gave his overview of tax and spending plans, designed to maintain a commitment to fiscal discipline whilst also addressing the need for investment in infrastructure to bolster business and the economy during what could potentially be a few years of reduced growth following Brexit.
Key spending plans announced include:
- A £23bn National Productivity Investment Fund (incorporating £2bn per annum towards research and innovation);
- A £2.3bn Housing Fund plus a further £1.4bn for the development of 40,000 more affordable homes;
- A £1.1bn Transport Fund; and
- A £1bn fund towards fibre optic infrastructure and 5G mobile.
On the fiscal side of the Statement the Chancellor reaffirmed the government’s commitment to:
- The proposed reduction of the rate of Corporation Tax to 17% (by 2020); and
- Personal Tax thresholds of a £12,500 Personal Allowance and a £50,000 Higher Rate threshold, by the end of this parliament.
At the same time, a perceived unfairness in the tax system is to be addressed with various anti-avoidance measures and the abolition of some reliefs. This will deal with matters like self-employed tax strategy arrangements, the use of the VAT Flat Rate Scheme and the use of Employee Shareholder Shares. There was also a reference in the speech to a forthcoming review of the advantages of incorporation and a desire to level the playing field further: we wait to see what this might mean, especially bearing in mind that we have only recently seen a hike in tax on dividends (from April 2016) to address what would appear to be the very same issue.
Please click here to download our full summary of this year’s Autumn Statement.
We have broken the summary down into the main areas of taxation and included comments on the more important changes, together with any planning points that may arise.
The summary provides an invaluable update for you and will help you get to grips with the changes.
It will remain on our website for you to refer to as and when you need it but if you have any questions, please contact our Tax Partners, Steve Crompton or Chris Barrington on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
direct dial: 01942 292505
mobile: 07730 436070