Autumn Statement

Nov 25, 2016

In his first and last Autumn Statement the Chancellor Philip Hammond, reaffirmed the government’s objectives for raising the personal allowance and the higher rate income tax threshold by the end of this Parliament. Plans for corporation tax to reduce to 17% by 1st April 2020 were also reaffirmed which is positive news for corporates. In addition and as expected Class 2 NIC’s will be abolished from April 2018. Further positive news appears in the form of a consultation on ways to build on Research and Development relief and the simplification of the Substantial Shareholdings rules allowing for an exempt disposal by a UK Company. The tax advantages of some salary sacrifice schemes will be removed from April 2017. In addition there will be a restriction to the Money Purchase Annual Allowance for pensions, so relief is further restricted on what can be saved once the pension funds have been accessed. Also from April 2017, where workers are engaged through their own limited company to work for a public sector body, responsibility to apply the intermediaries rules (commonly known as the IR35 rules) will move to the public sector employer, agency or third party that pays paying the worker’s company. The public sector body, agency or other third party will be liable to pay any associated income tax and National Insurance. Please contact us should you require further detail on the announcements and we look forward to addressing planning opportunities with our clients.

 

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