BRITAIN: ‘ GEORGE OSBORNE’S AUTUMN STATEMENT KEY POINTS ‘

#AceFinanceNews – BRITAIN – Dec.03 – Well the Chancellor has updated us on the state of the economy since his last statement: Here it is in key points courtesy of BBC UK reporting live. Read More and Share: Editor.    

' Key points of 2014 Autumn Statement: At-a-glanceScreenshot from 2014-12-03 14:57:24

‘ Key points of 2014 Autumn Statement: At-a-glanceScreenshot from 2014-12-03 14:57:24

State of the economy: 

UK fastest growing economy in the G7

3% growth forecast in 2014, up from 2.7% predicted in March

2.4% growth forecast in 2015, followed by 2.2%, 2.4%, 2.3% and 2.3% in the following four years

500,000 new jobs created this year. 85% of new jobs full-time

Unemployment set to fall to 5.4% in 2015

Inflation predicted to be 1.5% in 2014, falling to 1.2% in 2015

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For sale signs

Stamp duty: 

Reform of residential property stamp duty so that rates apply only to that part of the property price that falls within each band

0% paid for the first £125,000 then 2% on the portion up to £250,000

5% up to £925,000, then 10% up to £1.5m; 12% on anything above that, saving £4,500 on average priced home

Changes to come into effect at midnight on Thursday, 4 December

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Pound coins and paper money

Public borrowing/deficit:

Deficit ‘cut in half’ since 2010

Borrowing set to fall from £97.5bn in 2013-14 to £91.3bn in 2014-15.

Deficit projected to fall to £75.9bn in 2015, £40.9bn in 2016, £14.5bn in 2017 before reaching a £4bn surplus in 2018

By 2019-20 Britain will have a surplus of £23bn

Debt as a share of GDP to rise from 80.4% this year to 81.1% next year before falling in every year. reaching 72.8% in 2019-20

Tax receipts up to 2017-18 forecast to be £23bn lower than predicted

World War One debt to be repaid

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Traffic seen in wing mirror

Energy and fuel:

Fuel duty to be frozen

Sovereign wealth fund for north of England to keep benefits of shale gas exploration

Immediate reduction in oil industry supplementary charge from 32% to 30%

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Union Jack piggy banks

Savings and pensions:

ISAs to be transferrable to partners tax free

ISA threshold increases from £15,000 to £15,240 next April

Tax free annuities for dependents of people who die under 75

Commitment to complete public service pension reforms, saving £1.3bn a year

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Gatwick

Personal and business taxation:

Air Passenger Duty to be scrapped for under-12s from 1 May next year and for under-16s the following year

Personal tax allowance to increase to £10,600 next April

World War One debt to be repaid

Inheritance tax to be cut for families of aid workers who die in course of duty

55% death tax passed on to loved ones abolished

Libor fines to support Gurkhas and their families

Higher rate income tax threshold to rise to £42,385 next year

VAT paid by hospices and search and rescue organisations to be refunded

Introduce 25% tax on profits generated by multi-nationals that are shifted out of the UK, set to raise £1bn over five years

Bank profits which can be offset by losses for tax purposes to be limited to 50%

New £90,000 charge for non-doms resident in the UK for 17 of the past 20 years

Inflation-linked increase in business rates capped at 2%

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Man pushing buggy

Welfare:

Welfare spending to be £1bn lower than forecast in March

Two year freeze in working-age benefits (first announced in October)

Migrants to lose unemployment benefits if they have “no prospect” of work after six weeks

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Graduation

Health and education:

£2bn extra every year until 2020 for the NHS

GP services to get £1.2bn in extra funds from bank foreign exchange manipulation fines

Employment Allowance extended to carers

£10,000 loans for postgraduate students studying for masters degrees

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Factory

Business and science:

Business rates to be reviewed

Theatre tax break extended to orchestras

Research and development tax credit increased for small and medium-sized (SMEs) firms

Support extended to small businesses with £500m of bank lending plus £400m government-backed venture capital funds which invest in SMEs

New tax credit for children’s TV producers

£45m package of support for exporters

Expand tax relief on business investment in flood defences

Old pacer carriages on Northern Rail and the Trans-Pennine Express replaced with new and modern trains

National Insurance on young apprentices abolished

Britain awarded the lead role in the international effort to exploreMars

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Flags

Scotland, Wales and Northern Ireland:

Agreement reached on full devolution of business rates to WelshGovernment

Income tax to be devolved in full to Scottish Parliament

Corporation tax devolved to Northern Ireland if the Stormont executive can manage the “financial implications

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Housebuilding

Housing/infrastructure/transport:

£1.5bn for 84 roads projects in England

£2bn for flood defence schemes in England

Tendering for Northern Rail and Trans-Pennine Express franchises to replace pacer carriages with modern trains. 

Source: 

#ANS2014 

#borrowing, #economy, #fuel-duty, #health, #pensions, #public-debt, #savings, #stamp-duty, #taxation, #welfare

‘ Expat’s Renting Their Homes in UK May be Stripped of Their Personal Allowance Under Tax Raid ‘

#AceFinanceNews – BRITAIN – September 22 – Expats who rent out their homes in Britain will be stripped of the right to use the personal allowance, under a tax raid prepared by George Osborne Telegraph finance reported back in August.

Where-Do-British-Expats-Live-Infographic 

Britons could be forced to return from retirements overseas if the Chancellor presses ahead with plans to force non-residents to pay tax on all their UK income, accountants warned.

Retired people drawing a Government pension are also likely to be hit by the proposals, which could cut a couple’s income by up to £4,000 a year.

At present, EU nationals and British expats are entitled to offset income earned in the UK against the £10,000 personal allowance.

Mr Osborne first indicated his desire to curtail the allowance in the March budget.

Under Treasury proposals released for consultation, the allowance would be restricted to people with a “strong economic connection” to Britain, bringing the tax regime into line with the US, Canada and much of the EU.

The move could affect up to 400,000 people and raise the exchequer an extra £400 million a year.It would include 175,000 people who live abroad and earn an income from property in Britain.

Many of the 1.2 million British retired people living overseas will not pay extra tax on their pension because they are either UK residents for tax purposes, as they spend half the year in Britain, or because most state or private pensioners are only taxable in the country of residence.

However, UK government pensions are only taxable in Britain, meaning that unless the Treasury introduces exceptions, former civil servants, NHS workers and council officials living overseas will pay more tax.

British diplomats and missionaries who are currently entitled to the personal allowance may also be hit by the tax changes, the Treasury consultation says.

While some expats will be able to claim tax relief from their country of residence, those living in low-tax jurisdictions – such as Hong Kong and Dubai – will pay more tax overall.

Jackie Hall, a tax partner at accountants Baker Tilly, said expatriates should consider selling their UK rental properties and reinvesting the money in shares or property abroad.

Some Britons may be forced to abandon a carefully-planned retirement overseas and return to Britain if the tax changes mean they no longer have enough to live on, she warned.

Our pensioners who have gone abroad are going to suffer the biggest impact,” she said.

If you have already jumped ship and are reasonably comfortable, this could turn the tide against you.

Those people may begin to struggle because they haven’t got the income in retirement that they thought they had.”

The Treasury said no decision has yet been made.

#AFN2014

#abroad, #britain, #expats, #taxation, #treasury

Is It Tax Avoidance or Tax Evasion?

for the List of offshore financial centres

for the List of offshore financial centres (Photo credit: Wikipedia)

So what is tax avoidance and what is tax evasion?

KEY FINDINGS –
Overall Size – A significant fraction of global private financial wealth — by our estimates, at least $21 to $32 trillion as of 2010 — has been invested virtually tax-free through the world’s still expanding black hole of more than 80 “offshore” secrecy jurisdictions. We believe this range to be conservative, for reasons discussed below.Remember: this is just financial wealth. A big share of the real estate, yachts,racehorses, gold bricks — and many other things that count as non-financial wealth are also owned via offshore structures where it is impossible to identify the owners.These are outside the scope of this report.
On this scale, this “offshore economy” is large enough to have a major impact on estimates of inequality of wealth and income; on estimates of national income and debt ratios; and – most importantly – to have very significant negative impacts on the domestic tax bases of key “source” countries (that is, countries that have seen net unrecorded private capital outflows over time

A simple question most people would say, but look at the reality of what it really means and it is not such a simple question after all!

The problem is simply what is tax evasion and what is tax avoidance and in this world of global financial contracts, the two blur into one. As and having worked in this country and offshore with my own offshore company and account, l personally do not see any reason to avoid paying tax! 

As any accountant l employed had the job of mitigating my tax bill in favour of saving me money and allowing me to pay only what l really should owe! This is legitimate tax avoidance and is completely allowable!  

Then we come to avoiding taxation by paying nothing at all and setting up offshore tax structures in such a way as to legitimise all tax avoidance! Whereby you have all the perks of claiming in the country of residency, but also can arrange to domicile yourself,by certain tax avoidance schemes and  not paying anything!  

So we have two different scenarios and the reason is tax avoidance!

So what of governments and revenue services where do they hold their funds? Well many of them have tax havens and massive property portfolios that are utilised for raising massive amounts of capital for investment purposes and make even more money, to totally avoid tax at all! 

Remember anyone can use legitimate means transfer money to another account offshore without paying tax! The problem is getting that money back into the country and not paying tax!

This is where tax avoidance becomes tax evasion in many cases!  

#32-trillion, #business, #david-gauke, #finance, #hm-revenue-and-customs, #offshore-construction, #policy-exchange, #politics, #tax, #tax-avoidance-and-tax-evasion, #taxation, #united-states

“COUNCIL TAX CHANGE”

English: This is what council tax is for: Mont...

English: This is what council tax is for: Montague Road, Warwick (Photo credit: Wikipedia)

The Government is to give people in England the legal right to pay annual council tax bills in 12, rather than the current 10, monthly instalments. The change would mean the expense is spread over the entire year, with the government saying it wants to “help people with their cost of living“. Ministers also want councils to use more electronic billing. In addition, the government has also confirmed that up to 300,000 families in England could benefit from plans to scrap separate council tax charges for occupied annexes. Currently only people over the age of 65, in so-called “granny flats”, are exempt from payments.

So what is your view on this government proposal?

 

#cost-of-living, #council-tax, #electronic-billing, #england, #eric-pickles, #government, #local-government-news, #secretary-of-state-for-communities-and-local-government, #taxation