During the Autumn statement, there was a lot to take in but below are two topics we think may be of interest to our clients and contacts.
Tax relief for travel and subsistence for workers engaged via intermediaries
Tax relief on travel and subsistence expenses will be restricted from 6 April 2016 for workers engaged through an employment intermediary, such as an umbrella company or a personal service company.
The absence of further detail suggests that the proposals in a consultation document issued by HMRC at Summer Budget 2015 will be taken forward unchanged. We shall find out more when we see the draft FB 2016 legislation on 9 December.
The proposals on which HMRC consulted were to remove tax relief for home-to-work travel and subsistence expenses for workers who are:
- Supplying personal services
- Engaged through an employment intermediary (such as an umbrella company or personal service companies
- Subject to supervision, direction or control of any person
Could this effect what you can claim? Call us if you are unsure.
Housing and property taxes
The Chancellor announced a large increase in the housebuilding programme and measures to help first-time buyers get a foot on the property ladder. At the same time, he applied a further tightening on private individuals who wish to buy buy-to-let property or a second home. Such people will now face a 3% stamp duty land tax (SDLT) surcharge on the purchase price of such property. Quite how this will work remains to be seen but this change will no doubt have tax planners burning the midnight oil.
In addition, the Chancellor announced that from 2019, any CGT due on the disposal of residential property will be payable 30 days after the sale rather than, as currently, on 31 January following the year in which the sale took place.
If these changes could impact on your buy to let strategy, give us a call to discuss our specialist property knowledge.