The Chancellor has announced the Autumn Statement – and there are some milestone tax changes to be aware of.
Today was always going to be a difficult Budget – hard decisions needed to be made. The number one thing that UK businesses need now is certainty.
Here are some of our key takeaways:
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Tim Walford-Fitzgerald, Private Client partner said:
“The Chancellor has stuck to his word. The changes to personal taxes announced today will mean that those with the broadest shoulders will see and feel the greatest impact. The decision to reduce the threshold at which the highest rate of tax is applicable from £150,000 to £125,140 will be felt by only those in the country earning the biggest salaries.”
Commenting on the change, Jamie Morrison, Head of Private Client said:
“This may be targeted at wealthy investors, but the reality is it will have big consequences for entrepreneurs and small businesses. The UK economy is struggling and we should be driving creativity and innovation, instead the Chancellor is crushing entrepreneurial spirit.”
Tim Walford-Fitzgerald, Private Client partner explains:
“The decision to more than halve the £12,300 tax-free allowance for capital gains to £6,000 means many could find themselves paying the tax for the first time on modest share portfolios. This is bad news for landlords, second home owners and those looking to sell their property as Capital Gains tax is applied at a much higher rate for residential property sales.
“Expect to see a decline in the number of disposals – people will hold off from selling their assets during unfavourable conditions. Or, as there is a delayed introduction for the new threshold, look out for a quick spike in sales as individuals and families try to beat the new implementation date.”
If you would like to discuss what these changes mean for your personal circumstances, please get in touch with us directly.