We have out-lined the most relevant areas as we see them below.
If you should have specific queries please just contact us.
Capital Gains Tax – Entrepreneurs’ Relief
The only comment relating to entrepreneurs’ relief concerned changes which the Government will consider making to the legislation introduced in the March Budget. Those changes concerned partnerships and joint ventures and they were going to be very difficult for planners, so the acknowledgement that change may be needed is to be welcomed.
Buy to let property changes
- Stamp duty land tax (SDLT)
From 1 April 2016 SDLT rates will be increased by 3% for the purchasers of buy-to-let and second homes.
- Capital gains tax
From April 2019, any capital gains tax due on the disposal of residential property will have to be made as a payment on account within 30 days of the disposal.
The rate of the new apprenticeship levy, due to begin in April 2017, will be 0.5% of the employer’s payroll. Every employer will receive an offsetting allowance of £15,000, so that only employers with a payroll of over £3m will pay anything.
The proposed changes to tax credits, rejected by the House of Lords in October, have been scrapped at a cost of £3.4bn in 2016/17.
The welcome news that the government will not introduce any new restrictions on how deeds of variation can be used for tax planning although they have said they will continue to monitor their use.
The dates for the contribution rate increases under auto-enrolment will be pushed back six months to align them with tax years. The rate for the new single tier state pension, due to start next April, was set at £155.65 a week.
The review of Pension Tax Relief is likely to be published in the Budget (March 2016).
In the absence of inflation, the ISA limits will remain at their 2015/16 levels (a maximum of £15,240 per person). A consultation on including equity crowdfunding as an eligible investment was launched.
Company car tax
A planned change to the tax treatment of diesel company cars, which would have removed the 3% surcharge from April 2016, will be deferred until April 2021.
Tax avoidance and evasion
Several measures to counter tax avoidance and evasion were announced, including a number targeted at offshore activities.
Other notes and risk warnings
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