Autumn statement – 5 December 2013

The Chancellor will present his autumn statement to Parliament on Thursday 5th December. The main purpose of the Statement is to update Parliament on the UK’s financial performance. However although not a “mini-budget”, we are expecting the Chancellor to include announcements both of new tax initiatives and further detail on previously announced tax changes.

What will be said on the day is known only to the Chancellor and his team. However the tax announcements we are expecting may include:

  • Married couples being given the option to transfer part of an unused personal allowance
  • Electricity generators being relieved of some “green” taxes
  • Confirmation that certain members of LLPs will be re-characterised as employees for tax purposes increasing national insurance liabilities
  • Increased tax on partnerships and LLPs with a mix of individual and company members due to new restrictions on allocating profits to a company member

In recent budgets the Chancellor reduced the “cost” of some tax reliefs by lowering their monetary limit – for example trading loss relief, pension contributions, business premises renovation allowances. We may see reliefs which have not had limits reduced – for example ISAs and entrepreneurs’ relief from capital gains tax – targeted.

Return here for future updates with Mazars’ analysis of the impact of the tax announcements.