This year’s Budget speech will be delivered on Wednesday the 3rd of March. This is the first post-Brexit budget.
Here are some of our predictions.
Chancellor will not stick to 2019 Conservative manifesto of not raising taxes.
Traditional increases on “sin-taxes” (i.e tax on Cigarettes and Alcohol).
Changes to pension relief; more likely to see a reduction to the lifetime allowance from £1,073,100 (2020/21) to a lower number. Might decrease the tax relief that high earners currently get.
Yearly increases to Corporation tax rates to reach 22% (currently 19%)
SDLT (Stamp Duty Land Tax) – Higher % for homes over £1M to compensate current SDLT holiday.
Inheritance Tax revamp; Expecting to see a shortening of the gifting period from 7 years to 5 years and removing tapered relief (highly sensitive topic given UK’s high mortality rate in the current climate)
Capital Gains revamp; expecting this to be aligned with normal income tax. This means (1) No separate £12,300 Tax-free Capital Gains allowance. (2) Bye-bye to Entrepreneur relief/Business Asset relief when you sell or liquidate the business. (3) Big tax when you sell BTL held on personal names.
We will be running Post Budget catch up on 4th March and 8th March. If interested, please do join our webinar.