I watched the Chancellor on BBC give an Autumn Statement he never wanted to give. He looked uncomfortable at times especially when the noise from the back benchers increased to a very loud level. There was a lot of waffle within the statement so I have summarised the main points that I found interesting and relevant to me and my clients:
1. From April 2012, anyone investing up to £100,000 in a new start-up business will be eligible for income tax relief of 50%. In 2012, any tax on capital gains invested in such businesses will also be waived.
2. Freeze on Capital Gains Tax allowance
3. Corporation Tax confirmed to fall to 25% next year, and rules of taxation of foreign profits to be published next week
4. End of tax breaks for the Channel Islands
5. Capital Allowance boost to several zones including Liverpool
6. The bank levy tax will be raised for a third time this year
7. National loan guarantee scheme - covering £40bn for bus' of less than £50m turnover. Expect fall in rates of one percentage point
8. The child element of the working tax credit will be uprated in line with inflation, but other elements will not
9. Public sector pay awards will be set at 1% for the two years after the current freeze ends. Mr Osborne says he's knows this is tough, but it's fair to taxpayers.
10. There'll be £40bn to underwrite loans for small and medium sized firms
Overall, these are just a few of the main points I picked up from the statement and in truth there was not too much that was announced that was new and not predicted. However for me it is clear from a tax point of view there is and will be a lot of planning to be done with the use of EIS and investing in new qualifying companies
If you have any comments or questions please do not hesitate to get in touch mitch@ljd.uk.com
Mitch the tax man
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