You are here: Home - News -

Spring Budget ’17: Hammond closes net on tax avoidance scheme facilitators

by:
  • 08/03/2017
  • 0
Spring Budget ’17: Hammond closes net on tax avoidance scheme facilitators
The Chancellor increased the government’s clampdown on tax avoidance by going after the individuals who set up schemes enabling people or businesses to shield assets from the tax man.

In his Spring Budget announcement, Philip Hammond said if a tax scheme was later overturned by HMRC, the person who set it up would be penalised. The government’s intention to close the net on tax dodging individuals and companies was announced in the Autumn Statement, and has since been subjected to “extensive consultation and input from stakeholders”.

Hammond said the government will also remove the defence of having relied upon non-independent advice, as evidence of having taken reasonable care, for those found using schemes when it considers its penalties.

Ian Gray, senior partner, Kinnison, said: “This Budget is continuing the previous government’s desire to stop wealthy property owners avoiding paying Stamp Duty and Inheritance Tax. There is a significant cottage industry in the UK and the Channel Islands of people making money creating structures to avoid tax. The government is going after the lawyers, tax and property professionals which propagate those schemes.”

Elsewhere in the Budget, the Chancellor announced a £435m package of measures to ease the burden of increasing business rates on smaller firms.

The three measures the Chancellor announced to assist smaller businesses were:

  • Any firm coming out of Small Business Rate Relief will receive an additional cap next year on increases of no more than £50 a month. Subsequent increases will be capped at either the transitional relief cap or £50 a month, whichever is higher;
  • Local authorities will be given a £300m fund to deliver discretionary relief to target individual hard cases in their local areas;
  • Pubs with a rateable value of less than £100,000 will receive a £1,000 discount on business rate bills in 2017.

See the full policy background paper to today’s speech.

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Philip Hammond Budget 2017
Spring Budget ’17: Self-employed NICs contributions up and shareholder dividend allowances cut

In his first Budget as Chancellor, Philip Hammond confirmed higher National Insurance Contributions (NICs) for the self-employed and a cut...

Close