Autumn Statement 2016
Significant points from Philip Hammond’s Autumn Statement:
- From 23 November 2016 to 31 March/5 April 2019, businesses will be entitled to a 100% First Year Allowance for the cost of installing electric charge-point equipment for electric vehicles.
- From 1 December 2016, income tax and CGT advantages of new shares issued in return for “employee shareholder status” will be withdrawn (shares already held not affected).
Impactful from 2017:
- Income tax rates and allowances confirmed as announced at Budget 2016: tax-free personal allowance will be £11,500, threshold for 40% tax will be £45,000.
- National Insurance thresholds for employers and employees to be made consistent at £157 per week (currently £1 apart at £155 for employees, £156 for employers).
- New tax-free childcare arrangements to be introduced on a trial basis in early 2017 and rolled out later.
- ISA investment limit rises from £15,240 to £20,000 per year.
- Public sector employers become responsible for tax due from individuals working for them through personal service companies and similar arrangements.
- Limit on pension contributions for those who have already made a flexible income drawdown from a pension scheme will fall from £10,000 per year to £4,000 per year. Limit for those who have not made such a drawdown remains £40,000.
- Rural rate relief doubles to 100% to match small business rate relief.
- From 1 June 2017, Insurance Premium Tax rises from 10% to 12%.
For our detailed summary of the 2016 Autumn Statement please click the link below.
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