Fuel duty

Fuel duty will remain frozen for a seventh consecutive year.

Anti-avoidance

The government re-affirmed its commitment to increase its activity to counter avoidance and taking more cases through to litigation. Sanctions and deterrents will be strengthened, such as a new penalty for any person who has enabled another person or business to use a tax avoidance arrangement that is later defeated by HMRC.

Disguised remuneration schemes will also be tackled for employers, employees and extended to the self-employed.

Insurance premium tax

With effect from 1 June 2017, the standard rate of insurance premium tax will increase from 10% to 12%.

Soft drinks industry levy

On 5 December 2016, the government will publish draft legislation for the soft drinks industry levy.

Making tax digital

Further to previously announced changes and consultations, the government will publish its response and provisions to implement Making Tax Digital in January 2017.

Letting agent fees

The government will ban letting agents' fees to tenants. For example, when the tenants sign a new tenancy agreement. This measure is subject to consultation ahead of implementing legislation.

Universal credit

Universal credit payments are gradually reduced as a person's income increases. The taper rate calculates the reduction in benefits as the individual's income increases. The government has announced that this rate will be reduced from 65% to 63% from April 2017.

This means that for every £1 earned after tax above an income threshold, a recipient of Universal credit should receive 37 pence, instead of 35 pence.

Air passenger duty

Given the strong interaction with EU law, the government does not intend to take any measures now in relation to the potential effects of air passenger duty devolution, but rather review this area again after the UK has exited from the EU.

Petroleum revenue tax

Following the government's decision to permanently zero rate petroleum revenue tax (PRT) from 1 January 2016, legislation will be introduced in Finance Bill 2017 to simplify the process for opting fields out of the PRT regime.

From 23 November 2016, the responsible person for a taxable oil field will simply be required to make an election and notify HMRC in writing, rather than complying with the conditions for opting out. This rule will apply for chargeable periods beginning on or after 1 January 2017.

A further consequence of the zero rating of PRT will result in the removal of the reporting requirements for oil allowance, usually reported on form PRT 1 and 2, and tax instalment reporting on form PRT 6. These measures will be removed with effect from 23 November 2016.

Charities

The government will give intermediaries a greater role in administering gift aid, simplifying the gift aid process for donors making digital donations. This measure confirms the announcement made at Budget 2016.

A sum of £102 million in LIBOR banking fines will be used over the next 4 years to support over 100 projects in aid of armed forces personnel, veterans and their families, along with those that serve in the emergency services and museums and memorials.

Our team can provide guidance on how these changes might affect you.