Autumn Statement - Key Points for our Clients
With the Chancellor, Philip Hammond, having announced, at the dispatch box last week, that this is to be the last Autumn Statement, with the 'Spring Budget' being moved to the Autumn in future years, we take a look at the impact of the Autumn Statement on our clients.
- Saving Income will still not be taxed until more than £5,000 is received in one financial year.
- Money Purchase allowances for pension schemes for over 55s are to be reduced to £4,000 per year, from £10,000 per year.
- The main annual allowance for pension contributions remains £40,000.
- The ISA Limit will increase from £15,240 to £20,000 in April next year.
- The Junior ISA limit is up to £4,128, from April.
- The Personal Allowance continues to increase in line with the government promise to increase it to £12,500 by the end of this parliament.
- A three year NS&I Investment Bond, allowing a maximum investment of £3,000 will be launched in April next year, it is anticipated that it will pay 2.2% interest.
- The Tax and (employer) NI benefits of salary sacrifice schemes are to be withdrawn from April 2017, this does not apply to pension contributions, cycle to work schemes, ultra-low emission car schemes or childcare vouchers.
- A new trading and property income allowance for those who rent out a room in their home or sell a few bits and bobs on ebay or through car boot sales - the first £1,000 income will be tax free. it seems as though any income above that level can be reported on an informal basis to HMRC.
- Insurance Premium Tax is to increase from 10% to 12%.
- The rate of Corporation Tax will drop to 19% from April 2017 as anticipated.
- Upfront fees imposed on tenants by lettings agents have been banned.
Signposts as to what we may expect:
- There is a consultation ongoing about the level of the Main Pension Annual Allowance and the Chancellor will report back on this in the budget in 2017 - it is thought that there may be a loosening of the MPAA, but we will have to wait and find out.
- The pensions Triple Lock is being looked out and while it seems unlikely that anything will be done about it during this Parliament, it is something at which the government are looking closely.
- The corporation tax regime is to be extended to foreign companies receiving income from the UK.
- Nearly £4 billion has been set aside to aid with building more affordable housing and improving the housing infrastructure nationally, with a particular emphasis on those areas of high demand.