With the Autumn budget in just a couple of days what are we to expect?
With the pandemic still causing uncertainty and the end of the Furlough scheme, the Chancellor is facing a huge challenge to provide the country with another financial boost to sustain public spending and protect the fragile growth we’ve seen so far of the UK economy. The Chancellor’s Budget and Spending Review is a key moment where Rishi Sunak will announce the government’s financial plans for the next year.
So what might the Budget hold? With the 1.25% National Insurance hike already having been announced, let’s look at three other areas that we could also see announcements on:
Changes to capital gains tax (CGT)
Rates could be raised to bring them in line with income tax rates. Currently the rates are 10% for basic rate taxpayers and 20% for higher rate taxpayers – could these increased to 20% and 40/45%? Or perhaps there will be announced a cut in the annual CGT allowance.
A review of inheritance tax (IHT) could also be possible
The budget could see the Chancellor simplify many IHT rules in order to increase future revenues without directly changing headline tax rates. For example, the Treasury could look to abolish the gifts from surplus income exemption.
Corporation tax rates have already been confirmed to rise considerably in 2023, so more business tax increases in this Budget seems unlikely. However, with the furlough scheme now closed, HMRC is focusing on identifying tax errors and avoidance related to pandemic support. The government could therefore announce a ‘disclosure facility’ to all those coming forward to correct mistakes, hoping to claw back monies paid out incorrectly.
Whatever the announcements Jill Evenden will be watching carefully and will be analysing the Budget fully.
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