Despite speculation earlier in the year that it may not take place, the Chancellor is set to deliver his Autumn Budget on 27 October.
What can we expect?
In a speech to the Conservative party conference, Chancellor Rishi Sunak indicated that he would use tax rises, rather than borrowing, to fund future spending pledges. With the implementation of a new health and social care levy already announced last month, here’s three tax areas that we could also see reviewed:
- Changes to capital gains tax (CGT) could be revisited after its notable omission in the March Budget. Changes to CGT have been mooted for some time, with the Office of Tax Simplification previously recommending an increase in CGT to bring it in line with income tax rates.
- A review of inheritance tax (IHT) could also be possible. IHT brought in a record £571m to the Treasury in July 2021 and could see the Chancellor ‘simplify’ many IHT rules in order to increase future revenues without directly changing headline tax rates.
- Corporation tax has already been confirmed to rise considerably in 2023, so more business tax increases in this Budget seems unlikely. However, with the furlough scheme and business rates relief now passed, HMRC’s focus has already shifted to 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 in the short term.
Magma will be providing our post-Budget thoughts to help you manage the impact of the announcements on you and your business.
In the meantime, if you would like to discuss anything else in the context of your own circumstances, contact our team on 01788 539000 or 0116 261 0061.
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