With continuing uncertainty surrounding Brexit and forecasts dependent on whether there is an orderly withdrawal from the EU, Philip Hammond was only prepared to make a modest number of spending commitments in his Spring Statement, but promised us a full spending review in advance of the summer recess to be completed in time for the Autumn Budget.
Announcements made in the Spring Statement included:
- The promise of further Infrastructure spending on transport, digital networks and science and technology.
- Publication of two reports setting out achievements on tackling tax avoidance and evasion and setting out HMRC’s updated strategy for offshore compliance.
- Publication of draft legislation on new capital allowances for non-residential structures and buildings.
- Improvements to the Apprenticeship Levy.
- A commitment to the introduction of Making Tax Digital (MTD) for VAT but also a promise of a delay in the introduction of MTD for income tax previously set for April 2020.
We have also been promised further documents for the coming months including:
- Reports and consultation on housing planning reform.
- A consultation on the changes to capital gains tax private residence relief announced in the 2018 budget.
- A consultation on the corporate loss restriction.
- New guidelines on the conditions for approval of Enterprise Investment Scheme funds.
- A crack down on late payers for small businesses.
We will have to wait to see what happens to the economy post Brexit before we know how much the Chancellor will have available to him for his spending review, but in the meantime we can share with you our Spring Statement Summary which includes a recap of the key changes for the forthcoming 2019/20 tax year already announced and passed into Law.