Guy Ellison, Head of UK equities at Investec Wealth & Investment, comments on the impact of the the UK Chanelor George Osborne’s Autumn Statement…
The introduction of marginal rates of stamp duty changes will benefit the majority, though those at the top-end of the market will see a higher tax burden. From a market perspective this could weigh on the London-centric house builders and estate agents, for example Berkeley and Foxtons, whilst potentially favouring the more regional developers.
The abolition of air passenger duty for under 12’s, moving to under 16’s in due course should provide a modest fillip for the airline industry. On the negative side, changes to tax relief for banks will see them making a greater contribution to the Treasury and may weigh on that sector.
A notably generous giveaway around ISAs will benefit savers and the savings industry, as any ISAs can now pass to a spouse tax free, accompanied by a modest increase in the annual tax rate. We will have to wait until next week to get the long awaited details on the rates for Pensioner bonds which were first announced in the March Budget.
New tax proposals for multinationals deemed to be avoiding taxation on profits generated in the UK and the introduction of charges for non-domiciled individuals both reflect the Chancellor taking a tougher stance on those not deemed to be paying a ‘fair share’ of tax.