AUTUMN STATEMENT

In December 11, 2015
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AUTUMN STATEMENT

The Autumn Statement saw the Chancellor, George Osborne, announce a spending review aimed at delivering economic and national security by building on the foundations of a strong economy.

The main announcement for investors was targeted at those looking to purchase buy-to-let or additional homes. From April 2016, Stamp Duty on these purchases will be set 3% higher than for those buying their only property. While many buy these properties for long-term growth, those seeking an immediate rental income may be put off by the additional upfront costs.

Additionally, the Chancellor delivered a range of announcements that may help put more money in the pockets of Britons:

  • Tax credits will remain unchanged
  • From 2017, parents of 3 and 4-year-olds will get 30 hours free childcare if they work more than 16 hours a week and earn less than £100,000
  • Initiatives to lower the cost of energy bills and car insurance
  • Londoners will get a new Help to Buy scheme, where those with a 5% deposit can apply for an interest free loan of up to 40% of the value of a newly built home
  • The State Pension will rise to £119.30 a week from April, although the State Pension Age will also rise

However, auto enrolment, which has now seen over 5 million employees get a workplace pension, will see six-month delays to increases in contributions. The minimum employer contribution rates will now rise in line with the tax year, to 2% in April 2018 and 3% in April 2019.

While the Chancellor reiterated his plan to launch digital tax accounts for everyone in the country by 2020, something we have long supported, he also announced a reduction in the time allowed to pay Capital Gains Tax to just 30 days that will work in conjunction with the new digital service.

For small businesses, a new Apprenticeship Levy will be set at 0.5% of the wage bill, to help fund an extra 3 million apprenticeships by 2020. However, firms with wage bills of less than £3m will be exempt from the levy, which will come into force from April 2017.

For more information on the Autumn Statement 2015, visit https://www.gov.uk/government/topical-events/autumn-statement-and-spending-review-2015

 

This blog is based on our interpretation of the Autumn Statement 2015, published on 25 November 2015. It is a broad summary and cannot cover every nuance; you should not take or refrain from taking any action based solely on this blog.

 

Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. Past performance is not a guide to future performance. Tax rules can change at any time.

Please remember your home or property may be repossessed if you do not keep up repayments on your mortgage. We give clients the option to pay for mortgage advice by fee rather than commission. Equity Release refers to lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto Enrolment, Tax Advice and Estate Planning.

The opinions contained within this blog, do not constitute financial advice and no action should be taken based on this content alone.

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The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. https://register.fca.org.uk/

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