Autumn Statement: Early comment

Some early comment from Christy Wilson

“As part of Labour’s manifesto, the party promised no rise in the rates of income tax, NIC, corporation tax or VAT. However, given the spending amounts that Labour have committed to, it would seem that they need to further raise tax revenues in order to afford their spending commitments. Therefore, there is speculation as to whether, in the Autumn Statement, Labour may:

• amend the capital gains tax rates, for example by aligning those rates with income tax rates;
• make changes to inheritance tax, Labour previously said it did not plan to make any amendments to inheritance tax but made no commitments;
• introduce a form of wealth tax, potentially levying a 2% charge on high net-worth individuals;  and
• reduce the pension tax-free lump sum entitlement (currently 25% of an individual’s total pension savings, up to a maximum of £268,275)

Labour has announced that it is still going ahead with its plans in relation to non-dom reform, carried interest amendments and VAT on private school fees. Additionally, on 29 July it announced an increase to the rate and duration of the energy profits levy. Once the revenues from these tax changes are better understood, Labour will be in a position to know what further tax measures are needed to raise revenues.”

 
Christy Wilson is a tax lawyer at Katten UK