On 25 November 2015 George Osborne delivered a joint Autumn Statement and Spending Review.
On the tax side it was very much a reminder that this Chancellor intends to raise tax revenues by clamping down on tax avoidance and evasion. Today he announced new penalties for the General Anti-Abuse Rule, action on disguised remuneration schemes and stamp duty avoidance, and measures to stop abuse of the intangible fixed assets regime and capital allowances.
Osborne reminded us of the fast pace at which HMRC’s digital strategy is moving and the government’s ambitious plans – ‘HMRC is making savings of 18% in its own budget through efficiencies – in the digital age, we don’t need taxpayers to pay for paper processing, or 170 separate tax offices around the country. We’re going to build one of the most digitally advanced tax administrations in the world. So that every individual and every small business will have their own digital tax account by the end of the decade, in order to manage their tax online’.
This led on nicely to the announcement that from 2019 these digital tax accounts would enable HMRC to accelerate the collection of CGT on the disposal of residential property. Indeed on property he announced the biggest house building programme by any government since the 1970s. This programme will be ‘paid for by a tax on buy-to-lets and second homes’.
Osborne is concerned that landlords are not affected by the restrictions introduced in the last Budget on mortgage interest relief, so he is introducing new rates of SDLT that will be 3% higher on the purchase of additional properties such as buy-to-lets and second homes.
Although we have to wait until 9 December when the draft clauses in Finance Bill 2016 are published for details of the main tax announcements, the team at Gabelle have summarised today’s releases below.
- Further changes to entrepreneurs’ relief
- Farmers averaging extended to 5 years
- Loan relationships and derivative contracts
- Intangible assets and corporate partners
- Changes to eligible investments for venture capital schemes
- Corporation tax – loans to participators and charitable trusts
- Corporation tax – restitution interest
- Asset managers’ performance based reward
- ISA investments extended to include crowdfunding platforms
- ISA exemption extended to estates
- Reducing the payment window for CGT on residential property
- Relaxation of Business Investment Relief
- Summary of pension changes
- Encouraging arts and sport
- Enactment of inheritance tax concessionary relief
- Deeds of variation
- Inheritance tax on pension funds in drawdown
- Tax treatment of income from sporting testimonials
- Apprenticeship Levy
- Company car diesel supplement
- Reform of Employment Related Securities (ERS) legislation
- Auto-enrolment changes rescheduled
- Salary sacrifice review
- Disguised Remuneration
- Employment intermediaries – travel & subsistence
VAT & Stamp Duty Land Tax (SDLT)
- Additional reliefs from ATED and 15% SDLT on Higher Threshold interests
- SDLT filing
- VAT and education
- VAT and women’s health
- SDLT rate increase on purchase of additional residential property
- Government VAT errors boost economy
- Company distributions and transactions in securities
- Stamp Duty Reserve Tax: options abuse
- Anti-avoidance in relation to capital allowances and leasing arrangements
- GAAR penalties
- HMRC announces plans to encourage large businesses to be transparent