Overview

Most of the rumours reported in the press over the last couple of weeks turned out to be true which raises the question whether Autumn Statement secrecy is now a thing of the past, says Richard Mannion, national tax director, Smith & Williamson, the accountancy and investment management group.

Sale of residential property and personal private residence relief

Currently the last three years of ownership of a private residence are ignored so as to give time for the owner to sell after moving out without losing the tax exemption. This is to be reduced to 18 months from April 2014. The 36 month exemption was generally regarded as generous and so this tightening is not a surprise.

National Insurance

The Chancellor's basic message was that the economy is improving, but more work needs to be done to stimulate growth and jobs. This included removing employers' NIC (aka "the jobs' tax") in respect of employees under 21, but not until April 2015. Good news for business, good news for youngsters.

Corporation tax

Chancellor indicated that the reduced rates of corporation tax were leading to increased investment, thereby justifying their policy whereby the rate falls to 20% in 2015, attractive compared to many other countries in the G20. This gives useful clarity which should help reassure international and mobile businesses

Married couples allowance

Mr Osborne confirmed that certain spouses will be able to transfer £1,000 of their personal allowance to their spouse with effect from April 2015. However this proposal will be subject to tight conditions and it appears that only one-third of married couples will benefit. Consequently this is rather more of a sound-bite than a meaningful relief.

Small businesses and retailers

Positive news today for small businesses, especially retailers, restaurants and others on the high street. This should help give a fillip to struggling high streets up and down the country.

CGT for non-residents

Mr Osborne confirmed that CGT will be imposed on gains by non-residents who dispose of UK residential property but not until April 2015. It will be some time before we know the detail of the changes but this may be a problem for UK people who live abroad but keep a home here. However the delayed introduction will give time for many to sell free of CGT in the interim.

Tax avoidance and evasion

The Chancellor underlined this focus, however his estimate of it bringing in £9 billion over the next five years sounds optimistic bearing in mind the work done to stamp out tax evasion and avoidance to date and the receipts already generated.

Partnerships

Many partnerships will face changes in terms of allocating profits and losses. Some of the new rules will be effective from today and others from April 2015. The Government has published draft legislation alongside the Autumn Statement report and this will need to be carefully scrutinised.

By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.