From the headlines to the fine print, here’s Mishcon de Reya’s comprehensive briefing on what 2015’s combined Autumn Statement and Spending Review means for high net worth individuals and business owners.
This Autumn Statement was a Spending Review, focusing on the detail of the Government’s long-term economic plan and attempting to mollify the recent tax credit furore by positioning the Conservatives as “the builders”. George Osborne made very few substantive tax announcements in his speech and most of the key points covered below followed after the Statement itself.
The Statement was also unusually low on politics, perhaps a reflection of the amount of time until the next General Election. It is expected that the tax credits U-turn and major spending decisions will grab the headlines rather than any of the tax announcements. However, there was a surprise for buy-to-let landlords and second home owners with an increase in SDLT and a proposal to accelerate the capital gains tax payment deadline on the disposal of residential properties (although this latter change will not come in until 2019).
Despite capital gains tax and inheritance tax not being included in David Cameron’s “tax lock”, there were again no changes to the CGT rate or the Entrepreneurs’ Relief rules, or IHT business property relief and agricultural property relief.