The Chancellor’s Autumn Statement - 5 December 2012
14th December 2012
Chancellor George Osborne delivered his Autumn statement on 5 December 2012 and, at EQ Taxation, we have prepared a summary of the main announcements. Given the pre-publicity, it was not surprising that the Chancellor focused on tax avoidance and what he intended to do about it, in particular confirming the introduction of the General Anti Abuse Rule (GAAR) in April 2013.
At EQ Taxation, we support responsible and commercial tax planning which is being undertaken by hard working, honest business people and in our view, the GAAR makes little difference to what we do. Head of EQ Taxation, David Morrison, commented “there were no major surprises in this interim statement but perhaps this was a statement of intent for measures to come. At EQ, we concentrate on robust, commercial tax advice and therefore take the view that our clients carry little risk in this regard as long as HMRC focus their efforts on the right people.”
Finally, there were some interesting proposals regarding the taxation rules for the small unincorporated businesses (including a flat rate for certain expenses and a cash basis for computing profits) together with some very good news in the continuing reduction of corporation tax rates plus a 2 year extension of the Annual Investment Allowance from 1 January 2013 with the annual limit being raised to £250,000. On the reverse side, the reduction of pension tax reliefs both in the annual contribution to the scheme and the lifetime allowance limit does give some cause for concern to our clients, and of course their advisers.
As ever, a mixed bag but plenty to ponder. Please download a copy of our Autumn Statement summary here and Tax Rates Summary here.