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Autumn Statement 2016 - headlines

24th November 2016

The Chancellor, Philip Hammond, presented his first Autumn Statement.

The key tax announcements include:

  • National Living Wage to rise to £7.50 from April 2017;
  • Personal Allowance to be £11,500 from April 2017, and £12,500 by the end of this Parliament;
  • Higher rate threshold for Income Tax to be £50,000 by the end of this Parliament;
  • 100% Capital Allowance for electric vehicle charging infrastructure;
  • 100% business rate relief on new fibre infrastructure, for 5 years;
  • Confirmation that the Corporation Tax rate will fall to 17% by 2020;
  • Insurance Premium Tax to increase to 12% from June 2017;
  • Advantages of salary sacrifice to be abolished from April 2017, except for pension contributions and pensions advice, child care, cycle to work scheme and ultra low emission cars;
  • Confirmation of restriction of relief for corporate interest expense from April 2017;
  • Confirmation of a new penalty for enablers of tax avoidance schemes which are defeated by the Courts;
  • VAT Flat Rate Scheme to be tightened;
  • National Insurance: from April 2017, the employee and employer thresholds will be aligned at a cost for employers of £7.18 per employee;
  • Consultation on self-employment status and the tax advantages of incorporation; and

From 2018 the Budget will be announced in the Autumn rather than in the Spring, with a Spring Statement to replace the current Autumn Statement. Read or full summary below.

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