The new Chancellor Rishi Sunak has confirmed that the Budget will go ahead on 11 March 2020. Although there haven’t been many specific details in the Government’s manifesto, they have been hinting at radical changes. So, what might these be, and should you be looking to do any tax planning before the budget?
It is expected that the threshold for national insurance will be raised in the Budget giving a tax saving to many.
Mr Javid proposed a restriction to the current pension relief rules for those earning more than £50,000. While Mr Sunak may not include this in his Budget, if you are earning over £50,000 and are considering a pension contribution before the tax year-end on 5 April, it may be wise to go ahead before 11 March.
Capital gains tax
There has been talk that there would be changes to Entrepreneur’s relief that may even see it completely scrapped. For further analysis please see our article here.
There has been huge speculation about changes to the longstanding IHT rules which could see the rate cut from 40% to 10%, however, almost all reliefs could be abolished. If you are considering making any gifts you may wish to complete these before the budget. Further information can be found here, or please contact us at IHT@hlca.co.uk to discuss your options.
During the election, Boris stated that the 2% drop to 17%, which was due to take effect from April 2020, will no longer happen.
The Scottish budget was announced this month by Kate Forbes following the resignation of Derek Mackay. The budget saw little change to the income tax regime with only inflationary increases to the starter and basic rate bands. In addition, we saw a new 2% rate of LBTT on non-residential leases over £2m. For a detailed look at the proposed spending see our full analysis here.
Inheritance Tax Videos
In light of the proposed changes to the Inheritance Tax rules the IHT team have been looking at the current rules and what can be done before a possible change. As a part of this, we have produced a series of videos which look at ways of limiting your liability to both Income & Inheritance tax and planning for the future.
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