Curtains for the Autumn Statement
The Autumn Statement last year was the new Chancellor’s first set piece, but it did not contain much good news.
Mr Hammond’s first-and-last Autumn Statement contained a range of measures which marginally raised tax income, including:
Salary sacrifice schemes The income tax and national insurance advantages of salary sacrifice schemes, such as exchanging salary for a tax- free mobile phone, will largely disappear from April. This will reduce the benefits of pick-and- mix remuneration packages, although there will be transitional protections for existing arrangements and salary sacrifice to boost pension contributions will not be affected.
Money purchase annual allowance This reduced pensions annual allowance was introduced last April to limit the scope for recycling flexible pension income as fresh, tax relieved pension contributions. It was initially set at £10,000, but from 2017/18 it will be just £4,000. If you are planning to phase your retirement, this reduction could complicate matters.
Tax evasion and avoidance The usual raft of measures were aimed at increasing revenue, some of which had already been trailed by Mr Hammond's predecessor, George Osborne. One important new rule will be a legal “requirement to correct” by 30 September 2018 any “offshore tax non-compliance” existing on 6 April 2017.
If any of these measures could affect you, please contact us for further information and advice.
The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice. The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.