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Kirk Rice Blog

Spring Statement 2018 – How Will It Affect You?Written on March 14, 2018 by Kirk Rice LLP

Spring Statement 2018 – How Will It Affect You?

After two full Budgets in 2017, this Spring Statement was a less dramatic affair, with no announcements of tax changes. These will come in the Autumn Budget.

Mr Hammond made clear some while ago that he wanted his Spring Statement to be a short financial briefing rather than a mini-Budget, complete with rabbit-out-of-hat announcements. Although his speech ran to 25 minutes, rather than the 15-20 that had been promised, the Chancellor stuck to a no-frills script.

There were no new tax measures and no spending changes. The Office for Budget Responsibility (OBR) trimmed its projections for government borrowing, but Mr Hammond simply banked the savings for his Autumn Budget. Spending will be subject to a detailed review in 2019.

While the Chancellor appeared to say little, his Spring Statement was followed by the publication of a range of documents covering areas including:

  • English business rates – The next revaluation of business property in England will be brought forward one year to 2021, with three-yearly revaluations thereafter.
  • Entrepreneur’s relief – A consultation paper was published on how to give entrepreneurs’ relief in circumstances where it would otherwise be lost because of a new share issue.
  • VAT threshold – The government issued a call for evidence on restructuring the VAT registration threshold to offer more incentives for small businesses to grow. There is some evidence that businesses deliberately limit growth to avoid crossing the existing £85,000 threshold (which has been frozen for the next two years).
  • Tax and the digital economy – There were several papers examining taxation issues surrounding the digital economy, including VAT and income tax leakage through internet trading platforms.
  • Self-funded work-related training – A consultation paper was published examining how to extend the existing tax relief framework to self-funded work-related training by employees and the self-employed.

Many of these documents will eventually result in legislation, but that does not mean no tax changes in the interim.The impact of last November’s Budget (and some earlier measures) will soon be felt with the start of the new tax year.

Download our 2018 Spring Statement Summary

We trust that you find the 2018 Spring Statement Summary useful; if you have any questions about it’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please get in touch with Graham Jennings in our Ascot office on 01344 875 000, Hadley Baldock in our Putney office on  0208 789 8588 or Peter Sharratt our Financial services partner on 01344 875 000 or email info@kirkrice.co.uk.

If you would like to receive Kirk Rice’s Financial Services or Tax Questions regularly by email, simply email info@kirkrice.co.uk stating Money Matters & Taxing Times in the subject heading and we will add you to our distribution list.

Please note: answers are given for general guidance only and specific advice should be taken before acting on any of the suggestions made.

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