Autumn Statement Special Part 4 - Stamp Duty Land Tax (SDLT) and Avoidance and evasion

Stamp Duty Land Tax (SDLT)

On the 23rd of September 2022, the government increased the nil-rate thresholds of SDLT from ￡125k to ￡250k for all purchasers of residential property in England and Northern Ireland and increased the nil-rate threshold for first time buyers from ￡300k to ￡425k. The cut will remain in place until the 31st of March 2025. This will be legislated through the SDLT (Reduction) Bill.

Avoidance and evasion

In this week’s announcement, the chancellor addressed tax avoidance. The government will legislate in the Spring Finance Bill 2023 so that shares and securities in a non-UK company acquired in exchange for securities in a UK close company will be deemed to be located in the UK. This will have an effect where an individual has a material interest in both the UK and the non-UK company and where the share exchange is carried out on or after the 17th of November 2022. Draft legislation has been published alongside explanatory notes and a tax information and impact note which can be found here:

Capital Gains Tax: Share for Share Exchange - GOV.UK (www.gov.uk)

The government also announced additional Compliance Resource for HMRC, and the government is investing a further ￡79 million over the next 5 years to increase HMRC’s capacity to tackle serious fraud, and to reduce non-compliance among wealthy taxpayers.

Other measures include:

Cost of Living Support: Additional cost of living payments to support the most vulnerable households, including up to ￡900 of additional support in 2023-24 for households on means-tested benefits, including those receiving tax credits.

Changes to the taxation of electric vehicles: From April 2025, electric cars, vans, and motorcycles will begin to pay Vehicle Excise Duty (VED), in the same way as petrol and diesel vehicles.

Company Car Tax (CCT) Rates: The government is setting rates for CCT until April 2028 to provide long-term certainty for taxpayers and industry in the Autumn Finance Bill 2022. This can be expected to include higher but still reduced rates for EV cars.

First Year Allowance for electric vehicle charge points: The government will extend the 100% First Year Allowance for electric vehicle charge points to the 31st of March 2025 for Corporation Tax and 5 April 2025 for Income Tax.

In the final part of the Autumn statement newsletter, we will break down Benefits, Pensions, and the National Minimum Wage.