The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald
By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants.
This week, we are continuing our review of Chancellor Philip Hammond’s first (and last) Autumn Statement.
We’ve covered personal taxation changes and some business taxation matters.
As usual with Budgets and Autumn Statements, there is a lot of detail to cover.
This week, we continue on business matters from the Autumn Statement.
Social Investment Tax Relief (SITR):
From 6 April 2017, the amount of investment that social enterprises aged up to seven years old can raise through SITR will increase to £1.5 million.
Investment in nursing homes and residential care homes will be excluded initially, however the government intends to introduce an accreditation system to allow such investment to qualify for SITR in the future.
The limit on full-time equivalent employees for a qualifying social enterprise will be reduced from 500 to 250.
Individuals investing in a qualifying social enterprises can deduct 30% of the cost of their investment from their income tax liability, either for the tax year in which the investment is made or the previous tax year.
The investment must be held for a minimum period of three years for the relief to be retained. In addition there is no capital gains tax on a disposal of the investment.
Museums and galleries tax relief:
At Budget 2016, the government announced the introduction of a tax relief for museums and galleries that would be available for temporary and touring exhibition costs.
The government has decided to broaden the scope to include permanent exhibitions.
The relief will take effect from April 2017.
The rates of relief will be set at 25% for touring exhibitions and 20% for non-touring exhibitions and the relief will be capped at £500,000 of qualifying expenditure per exhibition.
Disguised remuneration schemes:
Recent tax changes have tackled the use of disguised remuneration schemes by employers and employees.
Now the government will extend the scope of these changes to tackle the use of disguised remuneration avoidance schemes by the self-employed.
Tackling the hidden economy:
Consideration will be made by the government to introduce tax registration as a condition of access to some essential business services or licences.
First year allowances on electric charge-points:
Expenditure incurred on or after 23 November 2016 on electric charge-point equipment for electric cars will qualify for a 100% first year allowance.
This relief will expire on 31 March 2019 for corporation tax and 5 April 2019 for income tax.
Northern Ireland corporation tax rate:
Devolution of power to the Northern Ireland Assembly allows the Assembly to set a Northern Ireland rate of corporation tax to apply to certain trading income. The Northern Ireland Executive has committed to setting a rate of 12.5% in April 2018. The government will amend the Northern Ireland corporation tax regime in Finance Bill 2017 to give all small and medium sized enterprises trading in Northern Ireland the potential to benefit. Commencement of the devolved power is subject to the Northern Ireland Executive demonstrating its finances are on a sustainable footing.
Venture capital schemes:
The government has proposed to make further changes to tax-advantaged venture capital schemes including the Enterprise Investment Scheme, the Seed Investment Scheme and Venture Capital Trusts to clarify some rules and provide some additional flexibility and certainty.
You can find out more about the Chancellor’s Autumn Statement on our website –
http://www.clayshawbutler.com/news/autumn-statement
You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) -
http://www.clayshawbutler.com/news/latest-news-for-business
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