As is customary, the run up to the autumn statement was full of speculation. But suggestions that inheritance tax would be altered did not materialise. Perhaps because of the optics!
Growth, Growth, Growth was the message of the Chancellor’s statement as he announced that he was introducing 110 growth promoting measures, including further investment in skills and apprentices, planning reform for major business projects and support for motor, aerospace, life sciences and renewables to name a few.
Against a back drop of recent increases to taxation the Chancellor, perhaps not surprisingly, reverted back to more traditional conservative measures of reducing tax and a ‘focus on making work pay’. He hopes that the changes to National Insurance for employees and the self-employed will go some way to making work more attractive as well as the increase of 9.8% in the national living wage.
Unfortunately there was no reduction in the main rate of corporation tax but a number of other measures were announced to encourage investment by business and support the growth objective. Permanent full expensing of capital was announced and a change to the R&D tax relief system will be introduced.
Time will tell if these measures have the desired effect. The overall message being portrayed is that things are becoming more positive (although the OBRs forecast released in conjunction with the announcement is less positive than the one released in March) but we still have some way to go before the Government’s target inflation of 2% can be achieved. The team at McCabe Ford Williams are always here to assist you with your development plans so please do contact us if you would like to discuss how the Autumn Statement might impact you or for any other tax / business advice.
You can view the report online or download a pdf.
Should you require any further advice on any matters announced within the Statement then please contact your local MFW office where our teams will be pleased to help.
Please note: Our update has been prepared ahead of the release of all the technical information relating to these changes and is therefore, designed to provide an overview of the Autumn Statement and should not be solely relied upon in making any personal or business decisions. Many of the details contained herein should therefore only be used for guidance purposes and the help of a professional should be sought who will consider your own unique circumstances and the best approach for you.