Accountants Milsted Langdon who have offices in Taunton, Yeovil, London, Bath and Bristol are urging individuals and businesses to carefully consider all the announcements made in the Chancellor of the Exchequers latest Autumn Statement.
During his announcement George Osborne revealed a number of new measures that will look set to have a massive impact on small and medium-sized enterprises (SMEs).
Retail was on one of the biggest winners in the Autumn Statement. During his speech the Chancellor announced that businesses on the high street would see their £1,000 business rate discount increase by half to £1,500. He also promised a wider review of business rates in the future.
Pubs, restaurants and shops that have been struggling to compete with large supermarkets and online shopping will all welcome the increase in the business rates discount and review.
The Chancellor also announced a significant increase in the amount of research and development tax relief that SMEs receive, which now stands at 230%. He said the Government wanted “British businesses [to] do more research and development – this is crucial to our productivity.”
SMEs will welcome the move, which will allow them to free up finances in other areas of the business, allowing them to quickly expand.
However, a radical move to Stamp Duty is the measure most likely to affect the majority of individuals. In a move aimed at shooting down Labour’s “Mansion Tax”, the Chancellor announced major reforms to Stamp Duty, which will see individuals buying homes worth over £1.5 million.
The new measure, which will come into force from midnight (3 December), will see no Stamp Duty paid on the first £125,000 of a property’s value, followed by 2% on the next £125,000 of a property’s value, then 5% on the next £675,000 of a property’s value, followed by 10% on the next £575,000 of a property’s value, while any properties over this amount will pay 12 % on the remaining value.
Rob Chedzoy, Tax Partner at Milsted Langdon said: “SMEs have been behind the economy’s growth for a long time and at last the Government seems to have recognised this and rewarded them with a raft of measures aimed at helping them.
“It is unlikely that the UK would be leading Western economies in growth if it weren’t for these dedicated firms, many of whom are our clients.”
“However, for those looking to move up the property ladder the announcement that Stamp Duty is changing may not be so welcome and a move designed to kill off Labour’s Mansion Tax fails to understand what the UK economy really needs.
“Individuals or businesses who want a better understanding of what the announcement means to them should speak to us.”