Autumn Statement 2015 – summary of key points
- No change to Deeds of Variation after all – for now. We can continue to use them to save tax as well as all their other vital uses but HMRC will keep the matter under review.
- Changes to the status of ISAs during the administration period were introduced this year and have caused practical difficulties in so far as the tax saving status lapsed on the death of the deceased even if the surviving spouse was to inherit and subscribe to take the deceased’s ISAs over. Fortunately, this impractical state of affairs is being reviewed and there will be legislation to preserve the tax benefits during the administration period in the Finance Act 2016.
- There has been a partial ‘u’ turn on the restrictions on Entrepreneurs’ Relief for CGT which were only just introduced in the FA 2015 – we await details of what might be reversed.
- Restrictions on loan interest in rental property was introduced in FA 2015 but now the introduction of a 3% rate of SDLT on buyers of second homes will surely affect the buy-to-let market and make it harder to be a cost-effective landlord.
- There is also to be a reduction in the payment window for SDLT generally – making it harder for conveyancers who will only have 14 days to pay the tax following a purchase rather than the current 30 days.
- On a similar cash-flow theme, the Government is to introduce a requirement to pay any CGT on the disposal of a UK property by any taxpayer, not just non-domiciled persons, within 30 days of the disposal – this is to be made the date of completion rather than the usual date of exchange of contract. This significant change bringing forward the payment date considerably, is to be brought in from April 2019.
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