Posts Tagged ‘#AS2015’

Autumn Statement 2015 – future measures

Wednesday, November 25th, 2015

Future Measures……

Moving forward to the Budget 2016 and the various consultations in place here are some of the items we expect to see:

  • Salary Sacrifice – Further consultation is being sought to assess what action can be taken to combat the rise in use of these arrangements.
  • Pension Tax Relief – We expect to see further restrictions on pension tax relief currently £40,000 limit for higher rate relief to be announced.
  • ISA Tax Relief in Probate – Expecting to see legislation to allow the ISA tax relief to apply during the estate administration period.
  • Loan Relationships – Following new accounting standards being introduced further rules on corporate debt relief are expected.
  • Tax Avoidance – Various new measures are expected to penalise those who undertake these schemes.

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Autumn Statement 2015 – corporate & property taxes

Wednesday, November 25th, 2015

Buy to Let Properties / Second Homes

Further to the interest restriction to be phased in from April 2017, the Chancellor announced further measures today to hit this sector:

  • Capital gains tax due on residential properties is currently paid in the January following the end of the tax year via the self- assessment tax return. New measures announced today will see the tax payment date aligned with the stamp duty date of 30 days following completion for residential properties from April 2019.
  • Higher rates of stamp duty will be introduced from April 2016 for properties in excess of £40,000. An additional 3% above the current rates will be applied for property to let properties and second homes.

 

Avoidance and Evasion

The Government continues to focus on tax avoidance schemes including increasing resources to this section to implement further measures. In April 2016 the following are some of the measures we expect to see coming through:

  • A new penalty is being introduced of 60% of tax due to be charged in all cases successfully tackled by the GAAR.
  • A new criminal offence will be enforced for tax evasion which removes the need to prove intent for the most serious cases of failing to disclose offshore income and gains.
  • New civil penalty for offshore tax evaders which is aimed at deliberate offshore tax evasion by the introduction of a penalty linked to the value of the asset.
  • A new criminal offence for corporates failing to prevent tax evasion from their agents.

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Autumn Statement 2015 – What was missing?

Wednesday, November 25th, 2015

What was missing?

‘Middle class tax perks’ as they were being dubbed in the press– salary sacrifice etc – the government is currently considering the position

R&D tax credits/reliefs – following high-profile speeches made at GCHQ and Imperial College London, some quarters were hoping for announcements made to R&D but this was not to be; instead extra spending on national security was announced

IHT – reductions in IHT relief on business & agricultural property – this was widely mentioned and expected but nothing in the details this time

Anti avoidance on dividends taken pre April 2016 – following the expectation that many business owners would

Reduction in CGT reliefs – Entrepreneurs relief – we’d been expecting to see a reduction to this generous relief given the need to make savings

Deeds of variation – the government has considered their use but no new measures are expected at the moment.