HomeInsightsNewsAutumn Budget 2017 Wish List


News // 16/11/2017

Autumn Budget 2017 Wish List

Autumn Budget 2017

Chancellor has rare opportunity to deliver tax cuts and make simplifications

Richard Godmon - Menzies AccountantComments provides by Menzies Partner Richard Godmon

With the focus on austerity continuing, concerns are growing that the Chancellor could remove some tax breaks intended to incentivise entrepreneurial investment. This could have disastrous consequences for the UK economy.

Since its introduction in April 2016, Investor’s Relief has been welcomed as a tax break for individuals wishing to invest in a trading company without necessarily being a direct employee or a named director. As the tax relief requires individuals to hold shares for a minimum period of three years, no one has yet benefited from the tax break, which will allow them to pay tax on eligible gains from share disposals at the discounted rate of 10%.

When the former Chancellor first introduced this tax break in April 2016, it was intended to incentivise an important group of investors, who wouldn’t normally qualify for Entrepreneurs’ Relief because they aren’t remunerated by the business they are investing in.

While it is too early to say how many individuals are expecting to benefit from the tax break, it is likely to be at least as many as currently claim Entrepreneurs’ Relief, and possibly more.

Tax reliefs in this area have begun to attract more attention from the Treasury however, as they are costing more than expected. A report published by the National Audit Office in 2013 revealed that the cost of Entrepreneurs’ Relief was £2.9 billion in 2013/14, three times more than originally expected. Part of the increase was probably due to the fact that the annual threshold for Entrepreneur’s Relief claims has risen from £1 million to £10 million, but the NAO also wondered whether there was undetected avoidance.

Based on these figures, it would not be unreasonable to assume that Investor’s Relief, which has a similar threshold for claims, could cost the Chancellor a similar figure when it kicks in from April 2019 onwards.

Read more of Richard’s pre-budget comments

man making a business wish

Autumn Budget 2017: Business Sector Wish Lists

Here follows a summary of the headline wish lists for the Chancellor’s 2017 Autumn Budget from each of Menzies’ business sector teams.

For more information about Menzies LLP or to talk to us about the impact of the Autumn Budget 2017 and implications on your business and personal finances, contact your Menzies Relationship Partner directly or complete our online contact form.

Print Friendly, PDF & Email

  • How competitive is the UK’s tax system in relation to others?

    Although the government is proud of the UK’s position with its most competitive tax system in the G20, initiatives such as the BEPS (Base Erosion and Profit Shifting) project, which has already been adopted by 124 countries, making it harder to stand out from the crowd. With tax becoming an increasingly important global topic, the […]

    Print Friendly, PDF & Email
  • Is your profit data misleading you? Part 1 – valuable insight

    Tim Dunn – Strategic Advisory Partner Developing good products and services is important, but it is not everything – commercially there are a number of pieces of the jigsaw that need to come together if a business is to achieve its potential and fulfil the owner’s dreams. Ultimately, profitability must be a key consideration – […]

    Print Friendly, PDF & Email
  • Is your profit data misleading you? Part 2 – applying to the business

    Tim Dunn – Strategic Advisory Partner In part one we examined the data challenges that face many SMEs and the power in defining what data you need and the difference between detailed analysis verses meaningful analysis. Now it’s time to consider what parts of your business you want to understand better. Stage 1 – define […]

    Print Friendly, PDF & Email