Autumn Statement 2015 Newsletter
It was no real surprise that the Autumn Statement and Spending Review had security as a key message at its heart, understandable given recent events.
The Chancellor laid out expected departmental cuts across a wide swathe of the government, although police and defence budgets were not subject to reductions despite rumours to the contrary.
However, the headline grabber will undoubtedly be the ‘U-turn’ over the proposed cuts to working tax credits, perhaps as a result of the more favourable than expected financial position of the country provided by the Office for Budget Responsibility.
Aside from the usual rumblings over additional funds to fight tax evasion and aggressive tax avoidance, as well as an increase to Stamp Duty Land Tax for residential investment properties, the Autumn Statement was relatively light on new tax legislation, with the Summer Budget apparently playing ‘Bad Cop’ against the Autumn Statement’s ‘Good Cop’ routine.
The team at A4G are devoted to keeping up to date with the latest economic developments and communicating the possible impact to our clients.
In order to achieve our mission statement of being the best all-round advisers to owner-managers we have sorted through the budget report to highlight the areas of importance to you and your businesses.
According to the Office of Budget Responsibility, the UK has remained the joint fastest growing economy in the G7 with the outlook for growth largely unchanged since the July Summer Budget.
With the Autumn Statement intended as an announcement for the government spending plans, it was interesting to see that whilst many of the government departments faced day to day budget cuts, there were several announcements for capital investment in various areas of the economy over the next few years, with George Osborne looking to build stability and security for the future.
On the whole, the Autumn Statement appears to suggest that there may well finally be a flickering light at the end of the austerity tunnel. Most businesses should now be able to plan for the future without having to overly worry about any nasty surprises in the form of tax hikes.
Issues Affecting Owner Managed Businesses
- Taxation of dividends
- Auto-enrolment – deferral of next contribution increase
- Travel and Subsistence Relief for Personal Service Companies
- Opportunities from Investment in Infrastructure
- Further attack on ‘aggressive’ tax planning
- Apprentices – the levy and the savings
Read in further depth about the effect on Owner Managed Businesses
Other announcements and new legislation
- SDLT increase for Buy To Lets and Second Homes
- Digital Tax Accounts & Earlier Payment of Tax
- Investment in Housing
- Extension of free Childcare
- Increase to State Pensions
- End of Personal Injury Claims?
Read in further depth about the other announcements from the Autumn Statement 2015
Reaction to the Chancellor's Speech
Economic and national security provide the foundations for everything we want to support. Opportunity for all.’
George Osborne, Chancellor of the Exchequer
"Let me quote from Mao, rarely done in this chamber, 'We must learn to do economic work from all who know how. No matter who they are, we must esteem them as teachers, learning from them respectfully and conscientiously. But we must not pretend to know what we do not know'.”
John McDonnell - Labour Shadow Chancellor
‘Businesses will be pleased to see the Chancellor staying the course on deficit reduction, his commitment to an industrial strategy, and the emphasis on nurturing a vibrant business community.’
Carolyn Fairbairn, Director-General - Confederation of British Industry
This Report was written immediately after the Chancellor delivered his Autumn Statement and is intended to be a general overview of the main announcements. It is based on the press releases and other documents available on 25th November 2015. Autumn Statement proposals are subject to amendment before the Finance Act receives Royal Assent. This summary is not intended as a complete summary of every measure. Every effort is made to ensure accuracy, but no liability is accepted for any action taken or refrained from in consequence of its contents. Always seek professional advice before acting.