bournemouth - autumn statement - november 2016

SpeakerAutumn Statement updateBournemouth November 2016

SpeakerChairman’s welcomeJames Robinson

pkf-francisclark.co.uk

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Housekeeping

@pkfFrancisClark#FCAS16 #Bournemouth


Payroll World Awards 2016:Payroll Team of the Year – Bureau/Service Provider (PW Payroll Solutions)

South West Insider Dealmaker Awards 2016:Young Dealmaker of the Year – Matt Willmott

British Accountancy Awards 2016:Shortlisted for National Firm of the Year winner to be announced soon…

Awards

Programme

• What does the Autumn Statement mean for the local economy? – James Robinson

• Personal tax update – Julian Smith

• Business tax update – Erin Davis



Speaker

What does the Autumn Statement mean for the local economy?


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The new era

• Brexit

• Philip Hammond’s first and last Autumn Statement

• Dorset:• Manufacturing• Rural areas• Oil and gas• Infrastructure• Unlocking development of public sector land

• VAT @pkfFrancisClark#FCAS16 #Bournemouth

SpeakerPersonal tax updateJulian Smith


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Contents

• Just About Managing

• Salary Sacrifice

• Ultra low emissions cars

• Other income tax and NIC measures

• Pensions, Savings and Investments

• Inheritance Tax@pkfFrancisClark#FCAS16 #Bournemouth


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Just About Managing (JAMs)

• George Osborne promised to raise the personal allowance to £12,500 and the higher rate threshold to £50k by 2020

• CPI applied to personal allowance – from 2020

• Universal Credit taper – 65% down to 63%

• Letting agent fees to tenants – banned



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Just About Managing (JAMs)

• National Living Wage - £7.20 to £7.50 from April 2017

• Childcare

• Fuel duty rise cancelled

• Tinkering around the edges



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Salary sacrifice

• Sacrifice of taxable pay for benefits

• Eg pension contribution, childcare vouchers, cycle to work not affected

• Phones, gym memberships, PHI, Car (other than ultra-low emission cars) etc

• Income tax and ers NIC will apply

• Limited grandfathering

• De minimis Benefits in Kind



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Ultra low emissions cars

• First year allowances (FYAs) – 100% capital allowances for electric charge points from 23.11.16

• FYA already for:

• Low emission cars

• Gas refuelling equipment

• Zero emission goods vehicles

• Company car charges

• 2016/17 – 7% of list price below 50g/km

• 2017/18 – 9% of list price below 50g/km

• 2020/21 – lower bands will be introduced@pkfFrancisClark#FCAS16 #Bournemouth


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Other Income Tax and NIC measures

• Employers and employees threshold will be aligned from April 2017

• Class 2 – abolished April 2018

• Termination payments over £30k exemption will be subject to NIC

• IR35 in the public sector



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Pensions, savings and investments

• ISA limit increased to £20,000

• NSI £3,000 investment paying 2.2% gross

• Money purchase annual allowance reduced to £4,000

• Social Investment Tax Relief

• Life insurance policies



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Inheritance Tax

• Nil rate band frozen since 2009 – until 2021

• Residence nil rate band and downsizing

• Inheritance tax relief for gifts to political parties

• Changes for non-doms


SpeakerBusiness tax updateErin Davis


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The main announcements

• National Productivity Investment Fund – 4 critical target areas (Housing, Transport, Digital Comm’s and R&D).

• Additional £23bn of spending by 2022

• £2bn p.a. investment in ‘Industrial Strategy’

• Commitment to the 2020 Business Tax Road Map

• CT rates unchanged (19% 2017 / 17% 2020)



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The main announcements

• Substantial Shareholding Exemption

• Post consultation in 2016

• Removal of Investing Company requirement

• Widens application of relief

• Employee Shareholder Status share scheme

• Withdrawn for shares issued from 1 December 2016

• Perceived use for tax planning rather than supporting a flexible workforce



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New ‘Industrial Strategy’

• Commitment of additional £2bn pa by 2020

• Ensure British business remains at cutting edge of scientific and technological discovery

• Industrial Strategy Challenge Fund – for cutting edge research on priority technologies – Innovate UK

• Consultation on how best to support emerging fields e.g. robotics, AI, biotechnology, advanced materials etc. Aim to improve commercialisation

• Review of R&D tax regime in early 2017 – aiming to make this more effective (£2.5bn per annum currently)


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• Government’s approach to business tax for the Parliament • Supporting small business – Cutting business rates by £6.7m

over 5 years• Various consultations• Continuing to deal with avoidance and aggressive tax planning• Level playing field for all tax payers• Simplifying and modernising the tax regime.

Business Tax Road Map - 2020



• Interest expense- Amount of tax relief on interest- For groups with net expense >£2m- Capped at 30% of EBITDA- Exceptions for groups with legitimately high interest

• UK measure from 1 April 2017 - Draft legislation awaited

Interest expense restriction



• Losses incurred from April 2017, • Apply to both standalone companies and group

companies• Allow carried forward losses to be used against other

income and gains• For taxable profits in excess of £5 million, restrict to 50%

the amount of profits that can be offset through losses carried forward

Trade Losses – New Rules



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And what else?• IPT to increase from 10% to 12% from June 2017

• Fuel duty frozen

• Business rates – Rural rate relief to double to 100% in line with small business rates

• Flat rate VAT scheme – new 16.5% rate for labour only businesses

• Doubling UK export funding capacity – “no viable UK export should fail for lack of finance or insurance from the private sector”



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And what else?• Environmental - 100% capital allowances for

expenditure on charge point equipment for electric vehicles, effective from today.


SpeakerChairman’s closing remarksJulian Smith


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Questions


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