Author: Caroline Lovibond

HMRC have confirmed that legislation will be introduced so that any retrospective variation to a partnership’s profit sharing arrangements made after the period end will not apply to returns for accounting periods starting on or after 5 April 2018.
In the Budget on 8 March, the Chancellor provided a lengthy explanation comparing the position of the self employed and employees, noting the more favourable tax treatment of the self employed and changes that make the benefits system more comparable with employees (with the introduction of the new state pension), but omitting to mention the real risks for genuine entrepreneurs.
For many farmers and landlords, the changes announced in Philip Hammond’s Spring Budget will not take effect until April 2018, which gives time to consider the detail and is to be appreciated.  However, the changes already announced to tax relief on interest where some of the borrowing relates to let residential properties will have an impact from this April, so landlords should consider this if they have not already done so when arranging borrowing.
From April 2017 there will be an additional residence nil-rate band worth up to £175,000 per individual (£100,000 in 2017/18, £125,000 in 2018/19, £150,000 in 2019/20, and £175,000 in 2020/21), with the unused residence nil-rate band of a deceased spouse or civil partner being available to the surviving spouse.

This year’s Autumn Statement from George Osborne has seen a dramatic U-turn on tax credits helping to quell negative political feedback on a measure that was always more of a timing issue as the Universal Credit was introduced.