First Thoughts on Autumn Tax Statement 2014

Tax experts Gabelle have been busy doing their Autumn Tax Statement Analysis. They are still working through the details but here is an overview of some of the highlights they�ve found so far�

Entrepreneurs' relief (ER) � from today ER will not be available where a sole trade or partnership is transferred to a related company. At the same time the corporation relief on any intangibles will be restricted. Where gains are reinvested into an EIS company ER will now be available when the gain comes back into charge.
Non-domiciled individuals � the remittance basis charge for non-domiciles who have been resident in the UK for 12 of the past 14 years will increase to £60,000. There will also be a new charge of £90,000 for those who have been resident for 17 out of the past 20 years. The charge for those who are UK resident for seven of the past nine years will remain unchanged. The government are also going to consult on making the election to pay the remittance basis charge apply for a minimum of three years.
Diverted profits tax � from 1 April 2015 diverted profits tax will be applied at a rate of 25% to multinational enterprises who make economic profits in the UK and divert these profits from the UK.
Stamp duty land tax (SDLT) � the calculation of SDLT on purchases of residential property will change so that rates apply to the portion of the purchase price within each band. The portion of the transaction value up to £125,000 is charged at a rate of 0%, the portion between £125,001 and £250,000 is charged at a rate of 2%, the portion between £250,001 and £925,000 is charged at a rate of 5%, the portion between £925,001 and £1,500,000 is charged at a rate of 10% and the portion over £1,500,000 is charged at a rate of 12%. These changes will take effect on and after 4 December 2014.
Research and Development (R&D) � from 1 April 2015 the 'above the line' credit will be increased from 10% to 11% and the SME scheme rate will increase from 225% to 230%.

For more updates, check out Gabelle's site.

Gabrlle are authors of four courses for accountingpd.net: Self-Assessment Tax Tips for Accountants, Property Tax Tips for Accountants, Partnership Tax Tips for Accountants and Tax Investigation Tips for Accountants.