The small business rate relief scheme is to be extended for another year, which is likely to be welcomed by most business organisations. A review of business rates is due to be published alongside the March 2016 Budget. Mr Osborne also announced that there would be a tax on big business to pay for new apprenticeships. The levy will be set at 0.5 % of the payroll bill. Every employer will receive and allowance of £15,000 to offset against their levy payment, meaning that only businesses with a payroll of over £3m will pay the levy.
The proposed changes to tax credits had been rejected by the House of Lords, and the Chancellor did a U-turn and scrapped them at a cost of £3.4 billion.
Capital gains tax (CGT)
As of April 2019, a payment on account of CGT due on the disposal of residential property will be required to be made within 30 days of the completion of the disposal. Gains on properties which are not liable for CGT due to private residence relief will not be affected.
More penalties in line with the general anti-abuse rule (GAAR) were set out. The Chancellor said: “New rules will be introduced to stop avoidance of stamp tax where ‘deep in the money’ options are used to transfer shares to a depositary receipt issuer or clearance service.”
Digital tax accounts
Mr Osborne has pledged to have the “most digitally advanced tax administration in the world” by investing £1.3 bn in digital tax accounts, which will give access to all small businesses and individuals by 2016/17.
Stamp duty land tax (SDLT)
This will be increased by 3% for the purchasers of buy-to-let and second homes from 1 April 2016. Three years later, any capital gains due on the disposal of residential property will have to be made as a payment on account within 30 days of the disposal.
Company car tax
A planned change to the company car tax treatment of diesels, which would have scrapped the 3% benefit differential between diesel and petrol cars from April 2016, will be deferred for five years.
If you need help planning for any of these tax changes in the coming tax year then contact an advisor on: 01273 882200.
All details above were correct at the time of publishing - for more up to date information please
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