Autumn statement key announcements – change to support the economy
Today Philip Hammond gave what is to be his first and also his last Autumn Statement announcement.
The shock of an announcement that the Autumn Statement will be abolished in 2017 was short-lived. In its place will be a Budget Announcement each Autumn so that in the future there will only be one announcement of substantive tax changes a year. This will allow a longer time for Parliament to consider those changes fully – a welcome change.
This was a statement focused on “preparing and supporting the economy” for a period ahead that still contains much uncertainty. It provided few announcements that are likely to require immediate action by many businesses or individuals.
Changes announced today include:
- Corporation tax will continue to fall to a rate of 17% as outlined in the 2016 budget.
- Personal allowance to increase to £11,500 and Basic rate band to increase to £45,000 for 2017/18. Commitment to raise personal allowance to £12,500 and basic rate band to £50,000 by end of this parliament.
- The rate of National Minimum Wage will rise from £7.20 to £7.50 in April 2017.
- Over £23 billion to be spent on Transport, digital communications, research and development and housing.
- Substantial Shareholding Exemption (SSE) – from April 2017 the rules are to be simplified. SSE applies to exempt capital gains on corporate share disposals from UK corporation tax where certain conditions apply.
- ISA limits will increase from £15,240 to £20,000 in April 2017.
- Letting Agents will no longer be able to charge fees to tenants.
- From April 2017 non domiciled individuals will be deemed UK-domiciled for all tax purposes once they have been resident in the UK for 15 of the past 20 years.
- As previously announced, the use of corporation tax losses will be reformed for losses incurred after April 2017.
- Insurance premium tax will rise from 10% to 12% next June.
- The government at Budget 2017 will consult on bringing non-resident companies’ UK income into the corporation tax regime.
- The appropriate percentage for calculating tax on company cars and fuel will rise by 1% for all vehicles emitting in excess of 90 g/km.
- Traders using VAT Flat Rate Scheme, who have limited costs, will need to use a rate of 16.5% from 1 April 2017.
The above is not an exhaustive list of today’s announcement, but intended to give a flavour. We will monitor for further information on the changes over the next couple of days with fuller details released this Friday (25th November).
To discuss any matters further please contact Anne-Maree Dunn