Here’s our initial feedback on the Autumn Statement, by Chancellor Jeremy Hunt.
Michael Blaken, our Accounts Director, commented that on the face of it the Autumn Statement seemed less severe than the media had predicted.
For individuals, the Chancellor’s tax-raising measures of freezing personal tax rates and reducing the 45p threshold were not a surprise.
“Cuts to dividend tax won’t have a huge effect on those who are basic rate tax payers. However, decisions will have to be made by those company owners who plan to stay within the basic rate band, because they will be feeling the pinch with the cost of goods and services increasing.
“The increase in company car rates had also been hinted at in the run up to the Autumn Statement. News of business rates re-evaluation, carrying with it the promise that two thirds will be no worse off, was also expected. Employers are struggling to fill roles, in the face of historically low unemployment, so the measures announced to encourage people back into the workforce are positive.”
Michael welcomed news that the recent Stamp Duty Land Tax cuts will remain in place, helping to keep momentum in the housing marketing.
“However, those who invest in second homes have been targeted, with the marked reduction in Capital Gains Tax allowances, so they may also be reviewing their investment strategies going forwards.”
We will be releasing a full analysis of the Autumn Statement and its impact on business owners, on Friday November 18. To ensure you receive a copy, sign up to our newsletter here.