With less than a month to go until the 2013 Autumn Statement, I thought I’d give a quick summary of the measures that are being called for or expected from the Chancellor George Osborne.
ENERGY ‘GREEN TAXES’ ROLL-BACK?
The recently-announced price increases for energy have made this a political hot potato. The Government is reviewing the ‘green energy taxes’ that add around £112 per year to the average household energy bill. The Prime Minister has pledged to scrap them altogether but this would be a drastic U-turn on policy from the Government and the yellow half of the coalition does not support the move. An Autumn Statement without something on energy bills and taxes would be a big surprise.
BUSINESS RATES FREEZE?
The British Retail Consortium has been calling for urgent business rates action for its members for some time. The Forum of Private Business has called for a two per cent cap. September’s RPI inflation measure of 3.2 per cent will be used to calculate the increase in next year’s rates, which the BRC says will see retailers paying £3.44 in rates for every £1 they pay in corporation tax. The BRC says this will put almost 20,000 jobs at risk in the retail sector alone. The Association of Licensed Multiple Retailers has said the rise will cost the pub industry £58 million.
CAPITAL GAINS TAX FOR FOREIGN PROPERTY INVESTORS?
The Chancellor is said to be considering removing the capital gains tax exemption currently enjoyed by overseas investors in the UK property market. Until now, foreign owners of UK property have been exempt from the 18 or 28 per cent CGT charge on the sale of property that isn’t their main home. Would this be a response to the critics of the Help to Buy scheme, who have accused it of driving up prices and creating a ‘housing bubble’? Knight Frank says that almost three quarters of new-build sales in central London are to foreign buyers.
IHT TO BE APPLIED TO TOTAL ASSETS ACROSS TRUSTS?
It’s currently possible to bypass the six per cent 10-year anniversary inheritance tax charge on assets held in trust by spreading them among multiple trusts. For example, if £350,000 worth of assets were held in a single trust, £25,000 would be liable for IHT. But, spread the assets equally among three trusts and no tax is due. The Government is said to be considering a rule change, which would see the charge applied to the total amount of assets across all trusts (less any nil rate band), rather than on a single trust.
So these are the stories making the headlines. But what do you think?
Call me on 0113 231 0202 or email at jm@uwm.co.uk to talk about your financial planning.
