Tax Matters Digest

To go straight to the articles in the latest edition please scroll down and expand the section/s below that are of interest to you. For a preview of these articles, read the introduction to the latest edition from Stefanie Redmond here:

“People need to stop speculating and just wait a small period of time.”

This was Business Secretary Jonathan Reynolds’ response when quizzed by reporters about what might be in the Autumn Budget. If only those few words were enough to quell the tsunami of speculation surrounding Labour’s first fiscal event in over 14 years which, as this edition of Tax Matters Digest is published, is only seven days away…

Reynolds’ comments were made at the Government’s International Investment Summit on 14 October, which did not give many clues as to what might be lurking in the Chancellor’s red box. It was confirmed a Corporate Tax Roadmap will be published alongside the Budget (note the apparent narrowing of scope from ‘Business Tax’ Roadmap promised by the Labour manifesto). This will enshrine Labour’s commitments on tax stability, such as capping the corporation tax rate and retaining full expensing. It will also highlight areas where the Government will be exploring change, although no further details were given.

It was the press round accompanying the Summit that really made the headlines on tax. Labour repeatedly refused to rule out increasing employers National Insurance (NI), saying the manifesto commitment not to increase NI specifically related to employees NI. In response to the not unreasonable challenge that the manifesto didn’t explicitly say this, Labour stood its ground: the manifesto was very clear, it said - no tax rises on “working people”.

As we approach the final countdown to 30 October, speculation is in overdrive. Recent rumours include a further freeze of income tax thresholds, NI on employer pension contributions, an increase in the rate of capital gains tax and Defined Contribution pension pots being brought into the scope of inheritance tax. It would be remiss of me not to point out that all of these measures (and more) were included in our Autumn Budget predictions article, which have weathered the storm of speculation remarkably well. 

But to echo the sentiments of Mr Reynolds, there is not long to wait now until all is revealed. There is no Tax Matters Digest on the week of the Budget, but we still have you covered with timely insights: our spotlight article this week has details of our Budget coverage and links to register for our live events. In this edition we also take an in-depth look at the roller-coaster ride that has been non-dom reform, summarising where we are now and what might come next on 30 October.

Life goes on despite the Budget, and employers need to be aware of the new HMRC guidance on Enterprise Management Incentives (EMI) share option plans . The new guidance means some companies that expect options over their shares to qualify for EMI reliefs may find their position challenged – potentially after the relevant options have been exercised. In Other News, our tax and law specialists take a deep dive into the much-anticipated Employment Rights Bill 2024 that was published on 10 October. A must read for all employers, this breaks down the contents of the Bill, but more importantly what it means in practice for your business.

Normal service will be resumed for our next edition as Sharon returns from Greece tanned, relaxed and just in time to get stuck into the Budget. I think we all may need a holiday after that…