Autumn Statement 2016 Other Analysis

Budget changes 

Key points:

  •  Autumn statement becomes autumn budget

The chancellor closed his speech with the revelation that the government would move to a single fiscal event in the autumn of each year with the intention of providing more stability for both businesses and individuals. 

The effect is that the existing regime of a ‘Spring Budget’ and ‘Autumn Statement’ is flipped on its head but will allow tax rates and bands to be known in advance of their application. This can only have a positive impact for the tax payer and their advisor. 

He added that he felt there was no need for major tax changes to be made twice in a year, instead there will be a Spring Budget in 2017 and Finance Bill together with an Autumn Budget later in 2017 followed by a Spring Statement. This enables the government to respond to the Office of Budget Responsibility’s (OBR) forecasts.  The statement will also review wider economic and fiscal changes together with any launch consultations. 

The first Spring Statement will be in the Spring of 2018, however, having two budgets in 2017 means it will be 2018 before the government’s intention of stability from one fiscal event can be met.

 

Tackling avoidance

The government has announced it is taking action to promote fairness in the tax system; a level playing field.

Key points:

  •   In order to tackle tax avoidance, it will strengthen sanctions and deterrents to those persons enabling tax avoidance.

The government will introduce a new penalty for anyone who has enabled another person or business to use a tax avoidance arrangement which is later defeated by HMRC.  The detail will be published in draft legislation shortly. 

When considering the application of penalties, for anyone using such arrangements, the government will no longer consider the defence ‘that a person has relied on non-independent advice’ as them having taken ‘reasonable care’.

In addition the government is investing further funds in HMRC to counter tax avoidance and enable cases to be taken forward to litigation.

Get in touch

To find out more about how we can help you or your business, call us on 0808 144 5575 and speak to a member of our team. Alternatively use our contact form to send us a message or arrange a callback.

CALL 0808 144 5575

or

Contact Us

All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.

Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.

Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW