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Exciting headlines don’t necessary make good tax policy
A critical look at government plans to simplify employee taxation
Anti-avoidance; R&D relief; pensions; venture capital schemes; inheritance tax; trusts; ISAs
Capital gains will remain eligible for entrepreneurs’ relief (ER) when realised even when they have been deferred into investments that qualify for the enterprise investment scheme or social investment tax relief, the chancellor announced in yesterday’s autumn statement.
The measure takes immediate effect, and is good news for taxpayers wishing to re-invest gains into unquoted trading companies. The previous system saw such investors facing the full capital gains tax (CGT) rate of 28%, rather than ER’s 10%
| Property price (£) | Rate (%) |
| 0-125,000 | 0 |
| 125,001-250,000 | 2 |
| 250,001-925,000 | 5 |
| 925,001-1,500,000 | 10 |
| Over 1,500,000 | 12 |
The abolition of employer National Insurance contributions (NICs) on young trainees is a “great idea” made at the “right time”, according to commentators inside and outside the tax sector.
Chancellor George Osborne this afternoon announced that firms will no longer have to pay NICs on earnings up to the upper earnings limit for apprentices under 25 years old.
Today’s autumn statement was a mixed bag for non-domestic taxpayers in the UK, experts have suggested, with the Chartered Institute of Taxation (CIOT) praising the announcement that there will be no changes to rules governing a non-residents’ entitlement to the UK personal allowance.
The government had proposed that a restriction should be introduced using an ‘economic connections test’ – but it will now not come into effect before April 2017, following a detailed consultation.
