Following the Chancellor's Autumn Statement and Spending Review announcement, Alex Henderson looks at the key outcomes. For up to date coverage of the Autumn Statement and Spending Review visit: http://pwc.to/1PXkROE
We’ve come to expect the Autumn Statement to be something of a mini budget in recent years, but this year the Chancellor reverted perhaps to type when he combined the Autumn Statement with the spending review. There weren’t that many new measures announced on the tax front, there are plenty of measures in the pipeline and looking forward to next March budget, we’ll be seeing things on international taxation for example, the outcome of the BEPS review, base erasion and profit shifting, so plenty in the pipe line.
On the day, the Chancellor though stuck to a few areas. If you’re a buy to let investor, you will have certainly have seen a number of things of significance. There’s the 3% stamp duty land tax levy on second homes, which could affect you and also the acceleration of the payment of capital gains tax after the sale of a property that’s not your main home. That will now be due 30 days later which is quite tight if you have to calculate the tax liability and it’s like PAYE being extended into other areas of the tax system. That’s part of the digitisation agenda which the Chancellor talked about and I think that’s going to be a major theme within this parliament. The tax system is modernised and at the same time the Treasury takes opportunities to accelerate the payment of tax which is a windfall essentially to the Treasury.
Other areas that he touched on are the apprenticeship levy will be of interest to large employers and that’s the biggest number in fact in the Autumn Statement figures, announcing to about £3bn a year so if you’re likely to be affected, definitely worth taking a look. He also returned to some familiar themes, he coined the devolution revolution, tag, referring to the devolution measures that are in the pipeline with perhaps a little bit of an acceleration in Wales, with income tax coming in potentially without a referendum.
He also talked about the Norther Powerhouse, other regional initiatives, business rates, all of these were expected but they’re shown to be themes that we expect the Chancellor to focus on throughout the remainder of this parliament.