At the time of writing this, the Chancellor of the Exchequer, Philip Hammond, is most probably finalising his first Autumn Statement.
He’s already indicated that he could be scaling back on the austerity measures which were threatened in the aftermath of Brexit – but my guess is that he’ll be treading very carefully!
His predecessor George Osborne pledged to cut Corporation Tax back to 15% (from its current level of 20%) but Mr Hammond has already said that he won’t be going that far. He is understood to be planning to cut it only to 17% – and this by 2020, so don’t hold your breath!
One measure that will be of interest to a number of my clients is the projected removal of tax relief on mortgage interest on rental properties. This is planned to be phased out by April 2017 and, with the additional Stamp Duty Land Tax on second and subsequent properties, this suddenly makes the buy-to-let market much less attractive.
However – last month’s budget statement in the Irish Free State reprieved similar proposals to discontinue mortgage interest relief from December 2017. This has now been extended through to 2020. Could the Chancellor take a (shamrock) leaf out of their book and be thinking about not going through with Mr Osborne’s plan?
Stranger things have happened this year so you never know!
What do you think?