Bournemouth - Autumn Statement - November 2016

Speaker
Autumn Statement update
Bournemouth November 2016

Speaker
Chairman’s welcome
James Robinson

pkf-francisclark.co.uk
.
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
@pkfFrancisClark

Speaker
What does the Autumn Statement
mean for the local economy?

.
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

Speaker
Personal tax update
Julian Smith

.
Contents
• Just About Managing
• Salary Sacrifice
• Ultra low emissions cars
• Other income tax and NIC measures
• Pensions, Savings and Investments
• Inheritance Tax
@pkfFrancisClark

.
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
@pkfFrancisClark

.
Just About Managing (JAMs)
• National Living Wage - £7.20 to £7.50 from
April 2017
• Childcare
• Fuel duty rise cancelled
• Tinkering around the edges
@pkfFrancisClark

.
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
@pkfFrancisClark

.
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

.
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
@pkfFrancisClark

.
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
@pkfFrancisClark

.
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
@pkfFrancisClark

Speaker
Business tax update
Erin Davis

.
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)
@pkfFrancisClark

.
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
@pkfFrancisClark

.
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)

.
• 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
@pkfFrancisClark

• 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
@pkfFrancisClark

• 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
@pkfFrancisClark

.
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”
@pkfFrancisClark

.
And what else?
• Environmental - 100% capital allowances for
expenditure on charge point equipment for electric
vehicles, effective from today.
@pkfFrancisClark

Speaker
Chairman’s closing remarks
Julian Smith

.
Questions
@pkfFrancisClark

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Bournemouth - Autumn Statement - November 2016

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