30 November 2015

Autumn Statement 2015 summary

Apart from the much publicised SDLT charge on all second properties there was little of note in the Autumn Statement although I suggest we should be wary of what may still appear in the Spring Budget and Finance Act. In recent year we have become accustomed to proposed legislation appearing at this time of year but there is nothing to say new legislation will not be introduced in the Spring.

This is because it had been widely predicted that major changes may be applied to those working as contractors or generally through personal service companies . However no announcement was forthcoming with the nearest to this area being notice that attempts at disguised remuneration schemes will be closed down with effect from 25 November 2015 by the use of retrospective legislation. Contractors working through personal service companies in general will not see tax-relief on travel and subsistence disappear as was feared and only contractors already caught by IR35 and temporary workers rules face a restriction as previously announced.
Our main impost this time is the additional 3% Stamp Duty Land Tax (SDLT) charge from 1 April 2016.

From April 2019 CGT due on the disposal of residential property will be payable within 30 days of the completion date of the disposal rather than by 31 January following the end of the tax year in which the disposal was made.
No changes to the rates or thresholds for working or child tax credits except the income increase disregard will reduce from £5,000 to £2,500 from April 2016.
And beware new penalties are introduced for offshore tax evaders and those who help, including a criminal offence of tax evasion involving offshore income and gains and a criminal offence for companies who fail to prevent their employees or agents from facilitating tax evasion by individuals or entities.
Looking ahead the new digital tax accounts (DTAs) will require most businesses, self-employed people and landlords to keep track of their tax affairs digitally and update HMRC "at least" quarterly. The government is considering whether taxpayers should also make regular payments of their income tax.