UK: Autumn Statement 2016: An Emerging Picture

In what we have today learnt will be the last Autumn Statement, Philip Hammond set out a number of confirmations and marked his tenure with a re-arrangement of the fiscal calendar. That, of course, was not all, and there remains a focus on offshore evasion and the potential introduction of more far reaching disclosure requirements.

Non-domiciled individuals

In line with the promise of greater certainty, the changes to the reform of the remittance basis, most recently set out in the Consultation Document issued in August, are recapped in today's statement. There remain a number of open questions, and it is to be hoped these will be conclusively addressed when draft legislation is released. The good news is that it appears that there will be no unwelcome changes from the previous proposals that:

  • Non-doms who have set up a non-UK resident trust before they become deemed domiciled will not be taxed on income and gains arising outside the UK and retained in the trust; and
  • The rules on business investment relief will be amended from April 2017 to ease the tax efficient remittance of offshore monies which are used to invest in UK businesses.  

It also seems that inheritance tax will be charged on UK residential property held by a non-domiciled individual indirectly through an offshore structure. This confirms the position set out in the Consultation Document issued in August.

The confirmation that there will be 'grandfathering' of some of the deferral benefits applying to non-UK resident trusts set up by non-doms is to be welcomed, and we look forward to the further details in the draft legislation, in particular on the treatment of distributions.

Offshore evasion and avoidance

As is the norm nowadays, it would not be an Autumn Statement (or indeed a Spring Budget) without some comments on tax evasion and tax avoidance. Perhaps the most interesting item to be announced was that the government will be consulting on a proposal whereby intermediaries who arrange 'complex structures for clients holding money offshore' will be required to notify HMRC of 'the structures and the related client lists'. A consultation paper on this will be released in due course which will hopefully clarify what is intended by this, but at first blush it would seem to be doubling up on the information which will be reported as part of the OECD's Common Reporting Standard ('CRS'), or which must already be provided for UK domiciliaries establishing foreign trusts. First reporting under the CRS is due to take place next year in respect of 2016 and so one might question what further information the government are looking to obtain from this measure. At the very least it would seem to be an additional burden to be added to an already long list of disclosure and compliance requirements, which will affect not only the people providing the information but also HMRC who have to review it all.

Apart from this new disclosure requirement, there is the familiar idea that 'all individuals and businesses have a responsibility to pay the tax they owe'. It is noted that since 2010, almost £130 billion in additional tax revenue has been raised through combating avoidance, evasion and non-compliance and that the UK's tax gap is amongst the lowest in the world. To build on this, the new regime of penalising those who enable tax avoidance arrangements that are later defeated by HMRC (which has been the subject of extensive consultation already) will be included in the draft legislation expected on 5 December.

A new legal requirement is being introduced to correct past failures to pay UK tax on offshore interests within a defined period of time, with new sanctions for those who fail to do so. And there will (possibly) be adequate resources at HMRC to deal with all of this, as the government is investing further in HMRC (though it is not clear by how much) to increase its activity on countering avoidance and litigating. It seems clear that, for the few people remaining who have not regularised their offshore affairs, the time to do so is now.

Offshore companies

There is to be a consultation on making non-UK resident companies which receive taxable income from UK companies subject to UK corporation tax. This would mark a significant change from the present position and it will be important to make sure that the implications of any changes for existing structures are carefully considered, although they may ultimately be beneficial.

Employee shareholders

With the Chancellor concentrating his limited firepower on the extension of the personal allowance for basic rate taxpayers, there was limited scope for relief for higher earners. Indeed this was confirmed with respect to employee shareholder status, a concept trumpeted during the George Osborne era, which allowed employees to trade employment rights for a tax advantaged stake in their employer, and which is to be effectively reversed and abolished from 1 December.

Offshore insurance bonds

There was some cheer for the insurance industry with confirmation that, following consultation, the changes to the punitive way in which the partial surrender rules on life insurance operate, as well as a loosening of the assets which may be invested in via insurance policies, will be tabled in next year's Finance Bill.


The only consultation paper released with the Autumn Statement relates to the lowering of the money purchase annual allowance ('MPAA') from £10,000 to £4,000 from 6 April 2017. This will limit the opportunity to 'recycle' retirement benefits as tax-relieved contributions. The MPAA only applies to individuals who have accessed benefits flexibly (on or after age 55) and wish to make further contributions to money purchase pension schemes in future.

Some interesting changes were also announced regarding overseas pensions. Foreign pensions and lump sums will become fully taxed for UK residents (currently only 90% of the actual amount of a foreign pension is taxable) and taxing rights will be extended from 5 to 10 years for recently emigrated non-UK residents receiving foreign lump sum payments from funds that received UK tax relief. An update to the eligibility criteria of overseas schemes for tax purposes is also expected.

Farewell Autumn Statement, welcome greater certainty?  

We have now become rather used to having an Autumn Statement and a Spring Budget. No more. There will now be a Spring Statement and an Autumn Budget. It seems that the Budget will remain the mechanism for announcing tax changes, and the Statement will respond to the forecast from the Office for Budget Responsibility.

It could be that this will be one means of delivering on the promise of greater certainty. The Autumn Statement proclaims that 'providing certainty is central to the government's aims for the tax system. The government's intention is to move to a single fiscal event in the autumn each year to provide more stability for businesses and individuals'.

The benefit of an Autumn Budget is that there will be a greater interval between announcements of changes and the start of the tax year in April. In theory therefore (provided that there is not greater use of anti-forestalling measures) taxpayers will have the benefit of a reasonable period between Budget announcements in the Autumn and those announcements coming into effect the following April. This is to be welcomed if it does indeed lead to greater certainty.

Draft Legislation

Draft legislation on the tax treatment of non-domiciled individuals will hopefully be released on 5 December. We will produce a detailed update when this is available.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Collyer Bristow LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Collyer Bristow LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions