On the personal tax front, the Autumn Statement is likely to feature a number of proposals which consider all sections of the community - so increasing the personal allowance band while imposing restrictions on trusts and other schemes usually used by the well-off.
Baker Tilly says the chancellor may take the opportunity to tackle a number of options typically used by the more well-off, such as introducing a restriction on the use of multiple trusts and making only one IHT nil rate band available split across all trusts created by the same settlor. Similarly, there could be cuts in the CGT entrepreneurs' relief lifetime allowance, and a cap to limit the lump sum that can be paid tax free from pension schemes at age 55.
A heavily tipped proposal, according to PwC, is introducing capital gains tax on sales of property owned by non UK residents, partly to cool the overheated London housing market. Rosalind Rowe, head of real estate tax at PwC, said: 'This is unlikely to raise much revenue since most overseas buyers hold on to property for the long-term, and for the same reason it's unlikely to free up housing.' An alternative would be to increase the Annual Tax on Enveloped Dwellings (ATED).
A key Liberal Democrat ambition, the firm said, was the possible new option of increasing the personal allowance again, to £10,500 from 2015, which is. More likely, according to PwC, is additional help for first time home buyers with another stamp duty holiday for properties. This time it might be targeted at a higher level, on properties in the £250,000 to £300,000 bracket, given rising house prices.
Richard Mannion, national tax director at Smith & Williamson, points out that tax measures costing the Exchequer almost £3bn are already in the pipeline and will take effect from April 2014. They include the increase in the personal allowance to £10,000 (costing £1bn), the introduction in the married couples allowance (£600m) and a new allowance on national insurance worth £2,000 for all employers (£1.2bn).
'Although there will be some money coming in from restrictions to tax relief on pension saving taking effect from April 2014, and tighter rules for partnerships, the new reliefs are likely to exceed increased cash inflows,' Mannion said.
Crowe Clark Whitehill says an online low-level domestic tax disclosure facility for individuals could be introduced, while Baker Tilly is expecting moves to enable HMRC to enforce early payment of tax in avoidance cases rather than having to wait until the liability is finally determined by the courts.
Richard Rose, tax partner at BDO, says now might be the time for the removal of higher rate income tax relief for pension contributions. 'Often speculated about but never acted on, it would be an easy revenue raiser to remove higher rate income tax relief for pension contributions. Hitting the higher earners, the timing of this may now be right for the government to weather any political backlash,' he said.
