The Chancellor’s Autumn Statement on 25 November was not as seismic from a tax perspective as some pundits had predicted. Nonetheless, it contained a number of previously unannounced tax measures, which are to be rolled out over the coming four years to 2020. We summarise them below:

2016/17

• HMRC is to continue gathering evidence from employers on the use of salary sacrifice arrangements, which the Revenue remains concerned about. The evidence will be presented to policy makers so that they can decide what action to take.
• Legislation will be introduced to tackle disguised remuneration (i.e. the avoidance of tax on earned income). Although it is yet to reach the statute book, when it does, it will affect such practises as from the present.
• A new penalty will be imposed on all cases successfully tackled under the General Anti-Abuse Rule (GAAR). Upon enactment, it will be 60% of the tax due.
• The Government is contemplating changes to amendments in the Finance Act 2015 governing Entrepreneur’s Relief (FA 2015 ER amendments). Treasury officials are concerned that contrived structures have been used to circumvent recent changes and the new reforms will be aimed at preventing ER under these conditions.
• A consultation will be launched to address rules governing company distributions and attempts to convert income into capital.
• Stamp Duty Land Tax (SDLT) will be raised by a further 3% from 1April 2016 for the purchase of buy to let and second properties.
• There will be no further restrictions on how deeds of variation are used, although their usage will continue to be monitored
• Following a consultation, the period for farmers to calculate their average profits will be extended from the current two years to five years

2017/18

• During the 2017/18 financial year, the Government plans to reduce the payment date for SDLT from the current 30 days to 14 days.

2019/20

• Rules for UK residents disposing of residential property will be brought in line with recently introduced rules for non-residents. This means that payments on account of any capital gains tax due on the disposal of residential property will now have to be made within 30 days of completion. Gains covered by Principal Private Residence (PPR) rules will not be affected.