Chancellor Philip Hammond delivered his first Autumn budget speech to Parliament on 22 November 2017.
Harding Lewis have summarised some of the headline points and put together a Budget report. Please click here to download the full report.
What is the bigger picture?
It seems offshore jurisdictions remain firmly in the cross-hairs of the UK government and expectedly, in those of the media. Blazing off the back of the Paradise Papers it seems ‘offshore’ continues to be the hot topic and the media reaction today seems somewhat unhappy that the Chancellor’s actions did not reflect the level of severity some would have liked. This could simply be due to the lack of time the Chancellor has had to make changes since the Panorama programme aired at the start of the month, or could it be signs that he has seen through the speculative mist. Either way he took the opportunity to piggy-back off public sentiment, in what is a rare opportunity to publicly promote a clamp down on taxes. Several remarks were made in reference to issues raised by the Paradise papers along with the promise and commitment that there will be more changes to come.
A couple of points that peaked our attention were as follows:
- Non-resident disposals of UK commercial property, are due to be brought within the scope of UK tax. Applying to gains accrued on or after 1 April 2019 this change might cause non-resident investors to reconsider their positions.
- From April 2020 income that non-resident companies receive from UK property will be chargeable to corporation tax rather than income tax. For example, Manx companies receiving rental income from investment property in the UK. Capital gains made by non-resident companies on the disposal of UK property will also fall under the corporation tax regime, as opposed to attracting CGT.
If you would like to talk to someone about these changes and what they could mean for you, please give Harding Lewis a call on 01624 679524 or e-mail us via our contact page on the website.