4 December 2014
Press ReleasesChancellor George Osborne will have heaved a sigh of relief this morning when given better than expected figures on Government borrowing and the deficit from the independent Office for Budget Responsibility.
He will also be buoyed by encouraging employment numbers, rising pay packets and that the UK economy is the fastest growing major economy in the world.
It framed his last Autumn Statement that delivered some tasty early Christmas presents for pensioners, homebuyers and small businesses, says Thames Valley and South Coast accountants James Cowper Kreston.
James Cowper Kreston’s winners
The clear winners from this Autumn Statement are pensioners, homebuyers and small businesses.
Helen Cahill, a Tax Manager at James Cowper Kreston said: “With the average price of a home in the Thames Valley at around £325,000 home buyers will from midnight tonight make a significant saving. This reform of Stamp Duty – whilst not favouring those buying homes over £900,000 – is long over due.”
“Pensioners have also done well under this Government. Pension reforms already announced have been well received, and now those pensioners who lose a partner will not have to pay tax on the transfer of their partners’ pension or ISA. This too is a welcome reform.”
Helen adds: “Small businesses – the engines of our economy – have also been given a helping hand. Retailers will particularly welcome the rethinking of business rates, and the extension of R&D tax credits is a major boost.
“Many businesses still fail to realise that they can qualify for R&D tax credits – it isn’t just limited to traditional tech businesses. R&D tax credits can provide a cash rebate for businesses that are making a loss, or a direct reduction on a company’s Corporation Tax bill if in profit.”
James Cowper Kreston’s losers
This year’s losers are the banks, large multi-national companies and non-doms.
Helen Cahill said: “George Osborne is unlikely to lose any votes by hitting out at those large companies that spend considerable efforts to minimize their UK tax bills and the banks, even if some of those banks are owned by the UK tax payer.
“Non-doms are also an easy, if relatively small target and the Government will be very aware of the wealth and spending they bring with them. Any measures to take more from them will need to be balanced by his desire to keep them in the country.”
