The UK Chancellor of the Exchequer is to announce the Autumn Statement on 23 November 2016. The Autumn Statement is sometimes used to introduce new tax measures or to announce intended legislation for the following year’s budget. Often draft legislation is published for consultation at that time.
The government is expected to introduce measures to stimulate the UK economy. In addition to more spending on infrastructure these measures could include tax cuts.
The Autumn Statement will be an opportunity for the Chancellor to clarify the new government’s intentions with regard to the corporation tax rate. Currently it appears that he may revive a plan of the former Chancellor to reduce the UK corporation tax rate to 17% by 2020.
The Statement may also further clarify plans to introduce Digital Tax Accounts for businesses and individuals, following consultation on various aspects of the plans.
There may also be further information about changes to the legislation changing the way that the IR35 legislation works in the public sector. This legislation aims to ensure that in defined circumstances individuals working for an intermediary such as a personal service companies pay the same tax as an employee performing the same function.
For employees there could be announcements on taxation of benefits in kind under salary sacrifice schemes and changes to the taxation of termination payments on leaving an employment.
There are also likely to be further details of measures on penalties for the use of artificial tax avoidance schemes and for agents advising individuals on using the schemes. There may also be more information on measures to tackle the hidden economy.