Business tax cuts on the cards for Autumn Statement

The chancellor is mulling plans to halve the rate of inheritance tax and cut taxes for small businesses in his Autumn Statement. A cut in the rate from 40% to 30% or 20% is being considered, and he is also examining proposals to increase the thresholds for the tax. The Tories are considering a proposal to abolish inheritance tax for its election manifesto next year. Jeremy Hunt is also considering cutting stamp duty, but there are concerns that doing so would increase inflation. It is increasingly seen as an option for the spring Budget. Hunt is also expected to cut taxes for small businesses. The threshold at which businesses pay VAT could be increased from £85,000 to £90,000. Business leaders and trade bodies have also called on the chancellor to provide a permanent tax break for investment. In a letter to the chancellor, almost 100 chief executives and directors of companies including Siemens, Nissan and AstraZeneca urged the government to announce a full expensing regime for companies beyond the current three years. Separately, the chief executives of 37 chambers, representing more than 35,000 businesses, have called on Hunt to use the Autumn Statement to offer “much-needed solutions to Britain’s investment problem”. The left-of-centre Institute for Public Policy Research think tank said the constant chop and change of government industrial strategy and a revolving door for senior ministerial appointments had cost the UK billions of pounds in investment. The Treasury has been told by official forecasters that it has far more “fiscal headroom” – as much as £20bn as opposed to the expected £6.5bn – because of rising tax revenues and falling borrowing costs. It has also been reported that council tax will rise by up to £120 a year for the average house, because the Treasury will allow local authorities to increase their bills by up to 5% a year. The Times (£)and The Times (£)The FT (£)The Guardian