Autumn Statement Tax Facts and Figures
Wednesday, November 30, 2016
We were told during the Autumn Statement that the Government “will stick to the business tax roadmap set out in the March Budget” and, in addition, the Chancellor announced some new measures. In brief, here are the key facts and figures to be aware of:
- Corporation tax will fall to 17%, the lowest rate in the G20.
- Salary sacrifice deemed “unfair”, from April 2017 the tax benefits will be scrapped (except for those involving pensions, childcare, cycle to work schemes and ultra-low emission cars).
- Tax advantages linked to Employee Shareholder Status will be abolished.
- Advantages restricted on the VAT flat rate scheme and the introduction of a new 16.5% rate.
- New penalty for those who introduce tax avoidance schemes that HMRC challenges and defeats.
- Business rates reduction package confirmed, with the transitional relief cap lowered.
- Increase of rural rate relief to 100%, worth £2,900 per year.
- Insurance premium tax will rise from 10% to 12% in June.
- Personal allowance limit to rise to £12,500 and higher rate rising to £50,000 by 2020.
- National Insurance threshold for employees and employers will be aligned at £157 a week.
- Tax changes for non-domiciled individuals will proceed as planned from April 2017.
- Income tax allowances of £1,000 each will cover trading income and property income.
- Tax-free childcare will be rolled out, representing a saving of up to £2,000 per child.
- Fuel duty rise cancelled at a cost of £850m, saving average car driver £130 a year.
- Pensions money purchase annual allowance to be reduced from £10,000 to £4,000 from April.
- National Living Wage to rise from £7.20 an hour to £7.50 from April next year.
- The new tax measures are set to raise around £2bn over the forecast period.