On the 3rd December George will step up to the plate and deliver his last Autumn Statement before the next general election (May 2015). What will he say? No doubt a controlled mix of thrift and pre-election give-a-ways?
Here’s a few of our ideas for tax changes next year. We would invite you to include yours by adding a comment to this blog posting…
- From April next year it should be possible to get easier access to pension pots. Why not allow a free-of-tax transfer of all, or part, of the pot as a top up to the State Pension fund for the transferee?
- Introduce a new form of director’s loan that can be invested in a director’s company for a fixed term, say 3 years. As long as funds stay put director would get some form of tax relief – say 10% of loan per year?
- Merging NIC and income tax. Will this ever happen?
- Change the income tax personal allowance so that lower income earning individuals qualify for the maximum, say £15,000 per annum, and that this is gradually reduced to £0 for taxpayers with income in excess of £150,000. In other words spread the rate of reduction rather than the present system where all the allowance is taken from income levels of between £100,000 and £120,000 per tax year.
- Allow parents to leave part of their estate to increase the amount of pension fund that their children have in the State Pension, free of inheritance tax charges.
- If we are serious about encouraging small businesses to invest why not bring back Stock Relief? Remember Stock Relief? Businesses allowed to write off stock increases against their taxable profits.
- Extend the present level of AIA beyond 31 December 2015.
- Allow firms that cannot make a full recovery of their AIA claim to surrender relief for a tax credit?
- Could the dramatic steps in SDLT be ironed out? Make the bands graduated rather than applying the highest band to the total property value being transferred.
- And last, but not least, introduce a sales tax for companies that sell in the UK from a fiscal base of operation (tax jurisdiction) outside the UK.
Over to you George…