Philip Hammond’s first Autumn Statement was also his last. After two Budgets in 2017, from 2018 onwards we will have a Spring Statement and an Autumn Budget. In his 2017 Autumn Statement finale, the Chancellor made a number of tax-related announcements:
- The tax and NIC advantages of most salary sacrifice schemes will be removed from April 2017, but there will be some exemptions, such as pension contributions.
- The government renewed its commitment to reduce the rate of corporation tax to 17% by 2020. It will also limit the tax deductions that large groups can claim for UK interest expenses from April 2017.
- The pensions money purchase annual allowance (MPAA) will be reduced from £10,000 to £4,000 from April 2017. This limit applies to people who have accessed their pensions flexibly and currently may therefore be getting tax relief on up to £10,000 of recycled pensions income.
- From June 2017 insurance premium tax will increase yet again, to 12%.
- There was the usual raft of anti-avoidance measures, including a new legal requirement to correct a past failure to pay UK tax on offshore assets.
There were many other important announcements which we cover in the summary. If you think you may be affected by anything included in the Autumn Statement, please don’t hesitate to get in touch.
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