Autumn Statement 2011

Date published: 01 December 2011

The Chancellor has delivered his Autumn Statement 2011 against a back drop of rising unemployment and a slowing economy. Despite this, the Government was careful to point out that it is predicting that there will not be another recession.

As expected, managing Britain’s debt and public sector pay dominated the Statement, with a plea to call off tomorrow’s strike by public sector workers. However, there was some good news for Entrepreneurs, in particular:

• the Credit Easing Scheme to help SMEs to obtain funding to include the Loan Guarantee Scheme and the Business Finance Partnership 
• Relaxation of regulations around employment law 
• EIS scheme extended to provide for 50% tax relief on investments of up to £100K to qualifying start ups and no Capital Gains Tax on gains invested through this scheme

The Chancellor also indicated that Tax Policy is still very much at the top of the agenda. Whilst the details are not expected to emerge until next Tuesday, 6 December when the draft Finance Bill is published, he did hint at what might come: 

• A reform to the taxation of foreign profits to be revealed next week 
• CT rate confirmed as reduce from April 2012 to 25% 
• New form of tax relief for R&D from 2013 
• Two more Enterprise Zones announced 
• Increase in Child Tax Credit from April 2012 
• Personal Allowances to increase in April 2012

We will, of course, be analysing the draft Finance Bill next week and will let you have our immediate thoughts together with any planning tips. For more information please contact an RSM Tenon tax adviser.