Things to be aware of on the tax front at the moment

Budget day is 11th March. The rumours are circulating about what the new Chancellor will announce in his budget and the feeling is that there will be some sort of tax increases on the horizon. Given that the current Government said they wouldn’t increase Income Tax, VAT or National Insurance the speculation is that Capital Gains Tax relief’s will come under the spotlight – the current rates of 10% (for business assets) or 20% are fairly generous, so these may be increased or reliefs restricted from what they are currently. Anyone considering selling an asset now or in the near future (land, property or a business, shares) is best advised to talk to us and we can assess any impact.

Reforms to Inheritance Tax may also be on the horizon as the Government have been conducting a review into this tax with a view to modernising it.

Tax relief for the purchase of equipment and machinery – we are awaiting details of this, the current annual limit for 100% relief up to £1million is due to finish on 31 December 2020 and we don’t yet know (at time of writing) what the limit in 2021 will be.

Businesses with financial year ends 31 March – there’s still a bit of time to assess profits/losses for the current year and take action to mitigate tax bills either by; investment in business equipment, putting money into pensions, redistributing profits. We have been working on estimates for our larger clients and if you would like an estimate but haven’t already spoken to us, please get in touch with your client manager (either Louise or Rachel).