The Chancellor’s Autumn Statement issued this afternoon targets amongst others:

  • Multinationals who artificially shift profits out of the country. Proposal is that they will now pay taxes of 25%.

  • Banks who currently offset substantial losses made during the recession against profits. There will be a cap on the losses that may be offset.

  • Non domiciles who have lived in the UK for 12 of the past 14 years will pay an increased remittance charge on funds remitted to the UK and a new charging point will be introduced for those who have been resident for 17 of the past 20 years.

  • Stamp Duty Land Tax. The current system relating to residential property has been fundamentally changed with the introduction of a graduated payment scheme with new rates to replace the existing system to take effect from midnight on 3.12.14 save in respect of those sales where contracts have been exchanged in which case the buyer can elect between old and new system. The top rate of SDLT of 7% increases to 12% from midnight on 3.12.14. The commercial property rates remain unchanged.

    The Statement provides relief in the areas of :

  • Small Business with the extension of the doubling of the small business rates relief for another year which means 380,000 businesses will pay no business rates at all.

  • The Retail Sector with an increase in the £1000 business rates discount benefitting shops, pubs, cafes and restaurants with a rateable value of £50,000 or below to £1500.00 in 2015.

  • Personal Wealth. Individual Savings Plans may now be inherited between husband and wife.

    The Statement seeks to encourage growth and productivity and to upskill the workforce with the introduction of:

    • £7bn worth of funding for road and rail improvements across the North of England to include the so called “Northern Powerhouse” agenda of linking the main northern cities and scientific knowledge based hubs

    • Substantial investment in the knowledge based economy built on existing northern science and technology expertise (including government loans for post graduate university students), including world-leading nuclear expertise and learning in Cumbria.

    • Up to £60 million continuation funding for the National Nuclear Users Facility

  • Taking advantage of the fall in the oil price by passing this on to consumers in a fuel duty freeze

    More detail available on request from www.pinifranco.com