Spring Budget - Building for the future

The Chancellor has delivered his first Budget announcement. Our specialists give their views of the key measures and outcomes to understand the impact on you and your business.

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Our video reactions

Our specialists give their insights following the Chancellor's first Spring Budget, discussing what the announcements mean for you and your business.

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Stella Amiss, our UK Tax Leader for Policy, Reputation, Media and Regulation discusses the business implications from the Chancellor's Budget announcement.
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Andrew Sentance, our Senior Economic Adviser gives his views on the Chancellor's Spring Budget announcement and it's impact.
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Ben Wilkins gives us his thoughts of the outcomes of the Chancellor's Budget announcement and the impact for employers and employees.
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Juliet Stuttard gives us her take on the outcomes of the Chancellor's Budget, focusing on staff retention, supply of talent, returnships, investment in skills and technology.
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Real Estate Partner, Rob Walker discusses the implications for the sector and the impact going forward.
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Alex Henderson, a Partner in our tax practice gives his summary on the outcomes of the Chancellor's Spring Budget.
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Nick Jones gives us an overview of the key government and public sector outcomes for the Chancellor's Budget.

 

Key outcomes of the Chancellor's speech

Business tax

Business rates - The business rates revaluation takes effect in England from April 2017. Three measures are introduced to support businesses facing increases in their business rates bill as a result. These include:

  • Support for businesses losing Small Business Rate Relief - capping the increase to the greater of £600 or the transitional relief cap.
  • A specific £1,000 business rates discount for public houses with a rateable value of less than £100,000.
  • Providing funding to local authorities in England to support local discretionary relief.

Research & Development tax relief - Administrative changes to the Research & Development Expenditure Credit (RDEC) will be made to increase clarity and simplicity of claims.

Tax for late life oil and gas assets - A discussion paper will be published alongside Finance Bill 2017 on the case for allowing transfers of tax history between buyers and sellers.

Finance Bill 2017 - As announced in the Autumn Statement and included in the draft Finance Bill 2017, legislation will be introduced on:

  • Substantial Shareholdings Exemption - amendments have been made to the draft legislation to provide clarity and certainty.
  • Loss relief reform - these draft rules will be revised to include provisions for oil and gas companies and oil contractors.
  • Hybrids and other mismatches - no changes from previous announcements.
  • Interest deductibility - following comments on the draft legislation these rules will be amended to make sure they don’t give rise to unintended consequences or impose unnecessary compliance burdens.

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Personal tax

Dividend allowance - The tax free dividend allowance will be reduced to £2,000 from April 2018.

Different forms of remuneration - The Government will consult on:

  • Taxation of benefits in kind - review of exemptions and valuation methodology.
  • Accommodation benefits - proposals to being the tax treatment of employer-provided accommodation and board and lodgings up to date.
  • Employee expenses - a call for evidence to better understand the use of income tax relief for employees’ expenses.

Image rights - HMRC will publish guidelines for employers e.g. football clubs, who make payments of image rights to their employees.

Re-basing - as previously announced, those who become deemed domiciled in the UK at 6 April 2017, will be able to treat the base cost of their non-UK based assets as the market value of that assets on 5 April 2017.  Re-basing is not available to individuals born in the UK with a UK domicile of origin.

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Avoidance and evasion provisions

Tax treatment of appropriations to trading stock - The ability to convert capital losses into trading losses will be eliminated from 8 March 2017.

Qualifying recognised overseas pension schemes (QROPS) - A 25% charge will be introduced on transfers to QROPs.

VAT: overseas roaming charges - The VAT rules will be amended to make sure that UK VAT is applied to mobile phone use by UK residents when outside of the EU, to align the rules to the existing treatment of use when in the EU. 

Enablers of tax avoidance - A new penalty is introduced for a person who has enabled a taxpayers to use an abusive tax avoidance arrangement that is later defeated by HMRC.

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Other

Making tax digital - the start date for unincorporated businesses and landlords with turnover below the VAT registration threshold is deferred by one year to April 2019.  Unincorporated businesses and landlords with turnover above the VAT registration threshold will be required to keep records in a digital format, and make quarterly reports of their results, from April 2018, using appropriate software.

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Stella Amiss
Tax Partner
Tel: +44 (0)20 7212 3005
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