Philip Hammond will stand on the 23 November to give his first statement on the UK economy since being appointed Chancellor in the summer. Given the EU referendum result and other developments in UK and worldwide affairs it will be interesting to see how Mr Hammond approaches the promised economic turbulence and fiscal uncertainty following Brexit.
We already know that Mr Hammond has abandoned plans set out by his predecessor (George Osborne) to return the UK economy to surplus by 2020. Mr Hammond will now doubt want to make his own mark, and has already highlighted his intention to ‘reset’ economic policy.
There is almost certain to be announcements designed to encourage investment in the UK to stimulate the economy and how this will be done is likely to set the political tone for the rest of this parliament.
Mr Hammond however has limited options, but a mix of tax incentives and projects to enhance infrastructure can be expected whilst attempting to establish Theresa May’s stated vision of a government that works for everyone and not just the privileged few.
Potential Areas of Change
· It is unlikely that personal tax rates will change, but there could be announcements relating to future increases in tax free personal allowances.
· Significant changes to Capital Gains Tax rates have already been in effect since April 2016, but will these rates increase to once again align them more with income tax rates?
· Landlords will be hit hard by changes already announced relating to the tax relief for finance costs and Stamp Duty Land Tax. Could there be a modification to these changes to lessen the blow of these unpopular policies?
· Business investment could be stimulated by increasing the availability of 100% Capital allowances for businesses on the purchase of plant and machinery
· Will any changes be made to the intention to implement the government’s “Making tax Digital” agenda? These changes are likely to affect many businesses and a delay to their introduction would be welcomed.
If there any taxation or accounting matters you wish to discuss either before, and after the Autumn Statement then please do not hesitate to contact us