Jaskarn Pawar, Chartered Financial Planner, gives a brief overview of the Autumn Statement
which was released yesterday.
Well a relatively quiet Autumn Statement compared to some we have seen in the past. Most of the announcements were related to the spending review which although fairly detailed, doesn’t affect us directly or immediately. What might affect you in the near future is:
A 3% additional Stamp Duty charge for buy-to-let properties and second homes. That seems a little unfair but then that’s tax for you. At least it’s a simple calculation. You just simply pay 3% more Stamp Duty than you would have before, if you purchase after April 2016.
Pension money held in Drawdown to be protected from Inheritance Tax where the funds have not been used prior to death. Up to now there has been the possibility of HMRC arguing the toss and deciding you haven’t drawn enough income from Drawdown and therefore apply IHT to the money. In future you should be protected from that happening with yesterday’s announcement.
A retreat on many of the tax credit proposals that were previously planned. This was to be expected after the ‘feedback’ received by George Osbourne earlier this year.
Every individual and small business will have their own digital tax account by 2020.
Apart from that it was really all about the spending review which I’m sure you’ll have your own views on as to where our money should and shouldn’t be spent.
For more information on the above or if you would like any advice on financial planning for the future, gives us a call to discuss: 01604 211234