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Response to The Autumn Statement 2014 – Richard Eastwood, Partner, Financial Adviser

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“The Chancellor used the Autumn statement to paint a positive picture of the country’s economic growth and its action plan towards reducing the deficit, highlighting that the UK has the fastest growing economy in the G7 with a 3 per cent growth forecast in 2014, up from 2.7 per cent announced in March.

“It seems that the government’s plan is working but difficult decisions still need to be taken to reduce the deficit and balance the books. From the figures outlined in the Autumn statement, the deficit has been reduced from a previous high of 11 per cent down to 6.8 per cent this year and 5.6 per cent for 2015. It is good news that the deficit will continue to reduce year on year until there is a small surplus in 2018.

 “The government has promised to take robust steps to close down avenues for tax avoidance and aggressive tax planning. Measures are being enacted to prevent tax avoidance resulting from artificial diversion of profits to controlled foreign companies, schemes involving groups of companies using total return swaps and claims for double taxation relief made through two loopholes.

“Furthermore, to prevent avoidance of employment taxes and stop companies disguising employment as self-employment, steps will be taken to prevent employers and employment intermediaries from avoiding National Insurance Contributions and circumventing their obligations.

“For Greater Manchester it was particularly good to see that a commitment to building a northern powerhouse was at the heart of the Chancellor’s statement. The government will invest in cities in the north by way of a new sovereign wealth fund which will be backed by revenue from the shale gas sector the coalition is establishing to invest in the future of the region.”

For advice or to chat to Richard post statement why not email him richard.eastwood@pearsonlegal.co.uk or call 0161 785 3500

 

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

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