A Spring Statement in the eye of the Brexit storm

SPRING STATEMENT MARCH 2019

SPRING STATEMENT

The Chancellor rose in a parliament preoccupied with the ongoing Brexit drama to deliver a Spring Statement on the state of the economy.

NO FRILLS

Mr Hammond made clear some while ago that he wanted his Spring Statement to be a short financial briefing and he stuck to a no-frills script.

NO NEW TAXES

There were no new tax measures and only minor spending changes. The Office for Budget Responsibility (OBR) trimmed its projections for government borrowing, but Mr Hammond kept his powder dry for the forthcoming Spending Review.

DEVIL IN THE DETAIL

While the Chancellor may have appeared to say little, his statement was followed by some announcements and the publication of a range of documents covering areas including:

  • Making Tax Digital (MTD) – the government confirmed a light touch approach to penalties in the first year of MTD’s implementation. MTD will not be extended to any new taxes or businesses in 2020.
  • Apprenticeship levy – the timing of the reduction in the co-investment rate for employers from 10% to 5%, and the increase to 25% in the amount that employers can transfer to their supply chains, will be brought forward. These changes will take effect from April 2019.
  • Draft legislation for the new structures and buildings allowance for investments in non-residential structures and buildings announced in the 2018 Budget. The relief will be given as an annual 2% flat rate over 50 years for new commercial structures and buildings.
  • Review of time limits for the recovery of lost tax involving an offshore matter, comparing them with other time limits. It will set out the rationale for the charge on disguised remuneration loans and will be laid by 30 March 2019.
  • CGT private residence relief changes announced in the 2018 Budget to lettings relief and the final period exemption.

These documents are likely to result in legislation following the Autumn Budget.

MORE?

To view our summary of the Spring Statement delivered on Wednesday 13th March 2019, see here: –

Spring Statement March 2019

STILL WANT MORE?

Take a peak at these:

Reminder of Five changes for 2019/20:-

Five things 2019/20

Changes to auto-enrolment 2019/20 and net pay and NIC:-

Auto-enrolment changes

If you would like to discuss any matters concerning your business or personal tax affairs, contact Paul Southward.

Paul Southward