Autumn Statement 2014: the Headlines
The Chancellor delivered his Autumn Statement this afternoon; his last before next year's General Election.
The headline tax announcements include:
- £2k Employment Allowance extended to include carers;
- A further crackdown on tax evasion, tax avoidance and aggressive tax planning;
- Specific anti-avoidance re share schemes, stamp duty on takeovers and intangibles on incorporation;
- IHT exemption extended to cover aid workers who lose their lives working overseas;
- A new profits diversion tax (25%) for multinationals on UK activities;
- A 50% increase to the Annual Tax on Enveloped Dwellings;
- For non-UK domiciled individuals, an increase in the Remittance Basis Charge to £60,000 after 12 years’ residence, and a new £90,000 charge after residence for 17 out of the last 20 years;
- Extension of theatre tax relief to orchestras;
- A new children’s animation tax credit;
- Anti-avoidance measures aimed at umbrella company employers;
- Increase in R&D tax relief for small businesses to 230%;
- Abolition of Air Passenger Duty for children;
- The continued freezing of fuel duty;
- A restriction on losses which can be offset against profits by banks;
- Abolition of 55% tax on pensions on death;
- Personal Allowance to be £10,600 next year, with the benefit of the increase to be passed onto higher rate taxpayers; and
- Fundamental reform of Stamp Duty Land Tax: a move to a progressive rather than “slab” tax.
Detailed analysis will follow later this afternoon.
Please contact a member of our tax team or Katharine Arthur, if you have any queries in the meantime.