Thursday, March 7, 2024 2:00pm
Thursday, March 7, 2024 2:00pm
Our panel of leading tax experts will explain the impact of the changes in their wider context. Likely implementation timings will be covered with a focus on providing practical, useable guidance. They will also help you understand what this means for you, your business and your clients.
Before the webinar takes place:
After the webinar takes place you'll get access to:
The general view was that the last Autumn Statement was a bit of a damp squib. There were some measures to encourage growth (particularly the full expensing extension) and NIC rate cuts for the self-employed and employees — though not employers - and some useful simplification measures. But not much by way of pre-Election giveaways.
The spectre of the Liz Truss mini-Budget from the year before must have loomed large in the Chancellor's thoughts — he could not risk the same market response to extravagant tax reductions. The economy was delicately balanced and there was a continuing need to focus on bringing down inflation.
The lack of action in November has increased expectations for the Spring Budget on 6th March which is now the Government's last chance to be generous to voters before they go to the polls.
So what might come up?
Clearly, tax cuts are likely. Some have suggested a 1p cut in income tax or an unfreezing of the income tax thresholds to reduce fiscal drag. Neither of these have been specifically trailed by government representatives but they could be being kept as rabbits to be produced out of the Chancellor's hat.
Another possibility is that the increased £250,000 nil-rate band for stamp duty land tax which is due to expire on 31 March 2025 will be extended or even made permanent.
Many Influential voices in the Conservative Party want at least a partial reversal of the corporation tax hike which came into effect in April 2023 so that cannot be ruled out.
There has been widespread speculation that something significant will happen on inheritance tax (IHT) — maybe even its abolition. This would seem an odd tax to cancel for a government wanting to appeal beyond its core elderly and wealthy support. According to the Institute for Fiscal Studies only 4% of death estates actually pay IHT. Abolition is also not straightforward to achieve because IHT is integrated with other taxes, particularly capital gains tax.
Something on the high income child benefit charge (currently a bit of a mess) must be being considered and the extension of transferable personal allowances has also been mentioned by some commentators.
It is also hoped that having made many announcements on research and development relief over recent years this will be left alone — though there are rumours that the new merged regime may be delayed.
One significant tax which is likely to escape relatively untouched is VAT.
The fact that this is a pre-Election Budget also means that, whatever the result, some of the measures will have a limited lifespan. The new Government will I am sure promptly embark on a fiscal event followed by a further Finance Act.
Whatever emerges before and after the Election we will be on top of it so you can be too.
YOUR HOSTPaul Robbins