The Autumn Statement for 2015 was delivered on Wednesday 25 November 2015. The documents are all over the place on the GOV.UK site – as usual. I have organised them in a way that I hope will make them easier to access from the Tax Notes Autumn Statement 2015 page.
In two days time we have another Autumn Statement to look forward to. Splendid. More paper to be printed out. And don’t forget that the following week they publish the draft legislation. Even more paper.
So, who’s betting that a number of provisions from our Summer Budget – which have just reached the statute books – are going to be drastically amended or abolished in two days time?
Don’t believe me? Remember ITA 2007 anyone? Passed just before Budget 2007, and within weeks they were making amendments to the partnership rules…
Entrepreneurs have been taking a bit of a battering this year, with three Budget measures being introduced to stop them from using the relief in a way in which it wasn’t intended by the likes of HMRC (announced during the first Budget of 2015 and at the previous Autumn Statement 2014). So it’s a welcome change to be able to write about some good news.
This is about a measure concerning the deferral of CGT, known as reinvestment relief. A person who has incurred a capital gain on another asset can defer his tax liability by subscribing for shares or securities under the various Enterprise Investment Schemes. For two of these schemes a gain that qualified for entrepreneurs’ relief couldn’t be deferred unless the investor gave up his claim to the 10% rate and paid the higher rates when the tax was eventually due.
This will no longer be the case – one can now defer the gain AND benefit from the 10% rate. In other words, you can have your cake and eat it.
But one needs to tread with caution, as the legislation contains a small trap…
(This article can be downloaded in pdf format at Academia.edu.)