Against the backdrop of recession and the highest monthly increase in inflation in over 40 years, Chancellor Jeremy Hunt delivered last week’s Autumn Statement. The focus was on bridging a gap of some £55 billion in public finances with a combination of tax rises (£25 billion) and public spending cuts (£30 billion). The freezing of some allowances until at least April 2028 combined with cuts in allowances for dividends and capital gains and a lowering of the 45 percent additional rate of income tax threshold were the main personal taxes announcements. Read the Institute’s Press Release reacting to the Autumn Statement. The analysis in this and subsequent stories is based on the publications of HMRC and HM Treasury.
Citing tax avoidance behaviour in the area of research and development tax relief for small and medium sized enterprises (“SMEs”), relief for SMEs is to be reduced, although the relief available under the “large” company regime is to be increased. And, according to the announcements, Northern Ireland will receive an additional £650 million in funding from Westminster.