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Tax News

11 Downing Street

All change at Number 11

Thursday 14 July, 2016

It's all change at number 11 Downing Street as the Chancellor George Osborne for the previous six years became the ex-chancellor following his forced departure. Phillip Hammond was named as his replacement within hours of Theresa May taking over as Great Britain's second woman Prime Minister. 

As Chancellor, Mr Osborne has strived to balance the country's finances, sometimes referred to as the austerity chancellor with cuts, a few more cuts and the odd tweak to the tax system along the way.  For many the changes to the taxation of dividends, and the loss of interest relief on mortgage interest for buy-to-let landlords has caused some ripples along the way.  However, with the announcement of reduced Corporation Tax rates, increasing Personal Allowances and falling national debt there surprisingly appears not to have been too many complaints. 

Our new chancellor Phillip Hammond, has been described as, 'a safe pair of hands' and with so much left to achieve that is what we certainly need.  With tax evasion becoming such a topical issue following on from newspaper headlines reporting on AMAZON, STARBUCKS and most recently the PANAMA PAPERS there is bound to be further announcements regarding this area of public outcry. 

Then there's MAKING TAX DIGITAL which due to the EU referendum has fallen from the spotlight. Social media followers will be aware of a campaign to sign a petition to call for a debate in Parliament to discuss the quarterly tax return.  Making Tax Digital is going to be a difficult concept to sell, and with more questions than answers will Mr Hammond be heading for choppy waters. 

Then there is the recent announcement from the former chancellor Mr Osborne that Corporation Tax should be reduced to an amazing 15% in order to attract overseas business to our shores.  With many already convinced that this is going to materialise will Mr Hammond be able to deliver this and if over what time period? 

Mr Hammond we look forward to your first budget, the burning question has to be when will this be? Can we expect an emergency budget over the coming weeks or will we have to wait until the Autumn Statement?

The last few weeks have been full of surprises; will we now see a period of calm or has the roller coaster ride only just started?

Questions and more questions! It's going to be a very interesting time ahead, who said TAX is boring?