Autumn Statement 2016
Autumn Statement 2016 summary
The Autumn Statement was the new Chancellor’s first real opportunity to set out the government’s post Brexit financial strategy. As expected due to the continued uncertainty facing the UK with Brexit, the Chancellor has mainly chosen to continue with many of the polices introduced by his predecessor, with some key changes to provide additional support to families who are “just about managing” and increased support for Research & Development.
Corporation Tax to drop to 17%
The Chancellor confirmed that he would maintain the previously announced reduction in the rate of Corporation Tax from the current 20% to 17% by 2020.
The Chancellor confirmed that the tax free personal allowance would be raised to £11,500 for tax year 2017/18 and that this would continue to rise to a target figure of £12,500 by the end of this Parliament. Similarly he would maintain the objective of raising the threshold for the higher rate of 40% income tax to £50,000 on the same timescale
National Minimum Wage to increase
The Chancellor announced an alignment between employer and employee NIC thresholds and an increase in the National Living Wage, with both of these measures to take effect from April 2017. This will result in increased costs to employers.
Salary sacrifice use restricted
Employers who operate salary sacrifice arrangements will also be impacted as these benefits will be treated as cash salary, with exceptions for ultra-low emission cars, pensions, childcare and cycles.
Fuel duty rise cancelled for seventh year in succession – at a cost of £850m, saving average car driver £130 and van driver £350 a year
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