Early in July, the Chancellor of the Exchequer will make some announcements intended to promote a post-coronavirus recovery.
The emergency measures introduced by the Government to help workers during the coronavirus crisis is said to be costing the treasury around GBP14 billion each month, and according to the Office of Budget Responsibility will increase public sector borrowing this tax year to around GBP300 billion.
There has been speculation that the Government will take the opportunity to announce some tax increases that would not be politically possible at any other time! However, as we are anticipating a second Budget in the autumn, it would be more feasible that this July fiscal event will probably outline future tax increases, with specific proposals delayed until later in the year.
Possible areas of reform could be Capital Gains Tax (CGT) rates; Inheritance Tax (IHT) reliefs, Stamp Duty Land Tax (SDLT) exemptions; and tax-free pension lump sums.
If you would like to discuss future tax planning, please call a member of our Private Client Tax team, or email [email protected]