This year’s Autumn Budget will be announced by Philip Hammond, Chancellor of the Exchequer, tomorrow with there much debate and speculation within the financial services sector.

Though it is predicted focus will be on the young to attract voters of that demographic, notably targeting first-time buyers by subject of the housing market, pensions and tax are looking to be hot topics following statements by the pension ministers earlier this month and somewhat again by the last speaker, Liberal Democrat leader Sir Vince Cable.

Montfort’s eye will be on Mr Hammond’s recent proposal to prioritise the reduction of the Money Purchase Annual Allowance (MPAA) for pensions that value from £10,000 to £4,000. Eugen Neagu, Montfort’s head of financial planning comments, “This will only reduce the tax relief given on pension contributions by less than £10 million - a mere drop in the ocean for the UK’s Budget - that certainly shouldn’t be classed a priority.”

It is possible the Chancellor will also look at addressing the Business Property Relief (BPR) rules for Inheritance Tax (IHT). It is estimated around £10 billion of BPR investments are held by investors who are not entrepreneurs and so the Budget will lose around £4 billion in IHT in the next 20 years. “With a further £2 billion invested each year in BPR investments, this is likely to increase Inheritance Tax avoidance”, states Eugen Neagu.

“Most of these funds are invested in stocks issued by companies listed on the Alternative Investment Market (AiM) which will create an adverse influence on these companies, stopping their progress to list on the London Stock Exchange  (LSE), and as a result, the growth of these companies will be affected when they can not access further capital’, comments Eugen Neagu.

“Every time the board proposes a listing to the main market (LSE), BPR investors tend to oppose this in the Annual General Meeting (AGM). The Chancellor is aware of this issue, yet he is of course keen to boost the LSE as the main stock market in Europe as much as possible in the current Brexit climate”, further states Eugen Neagu.

Tax avoidance is also predicted to make a star turn with additional tax avoidance rules and regulations likely, particularly with the new information on individuals and the employment of offshore trusts coming to light. “This will prove particularly popular with the subject fresh in people’s minds due to the Paradise papers”, comments Eugen Neagu.


The Autumn Budget will broadcast from 12.30pm (GMT) on Wednesday 22 November 2017. To discuss or receive advice on any of the statements, specifically those regarding cross-border finance, pensions, tax or investments, contact Montfort - info@montfort-intl.com

<< Back to all posts