I thought it would be prudent this week to focus our attention on deciphering the noise around the Budget, and highlighting the implications of possible tax rises.
We have had a lot of queries from clients as to what actions should be taken to head off possible tax changes announced in the Budget on October 30th. The forward guidance from the government is that it will be painful.
Let us steer you through the emotion of it all.
On our agenda this week:
- Introduction
- The UK economic outlook
- Taxes in the Budget
- Supporting growth initiatives
- A brief nod towards investment markets
- Summary
Introduction
There is the possibility that the changes in the Budget may not be as dramatic as feared. A well-worn strategy is to stir up worry and anxiety, only for the populace to breathe a sigh of relief when it turns out not to be as bad as expected.
However, with the government having such a majority and beginning a new parliament, now is the perfect time to instigate significant changes with a ‘black hole’ in our finances.
The prospect of Capital Gains Tax equalisation to Income Tax levels is proving the biggest concern for our clients. Businesses are very concerned, but the tax implications may not be as onerous as anticipated with the government stating that they are committed to growing the economy.
The Chancellor, Rachel Reeves, needs to do something to arrest the decline in public services, to fill the ‘black hole’ of debt and to find a compromise tax solution which is palatable.
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Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.
