As expected an EU referendum by 2017 is on the agenda along with free childcare, an income tax freeze and the extension of the right to buy scheme for housing association tenants. There are also a number of bills that have been proposed.
The Enterprise Bill will incorporate measures to reduce regulation on small businesses and help them develop, in a bid to boost job creation. The Enterprise Bill will also contain measures to create a conciliation service, to help settle disputes over late payment practices between small and large businesses. There are also plans in place to improve the business rates system ahead of 2017.
There were various tax pledges made by the Conservatives during the General Election and they are set to keep their promises in the Finance Bill as the Queen announced that there would be no rise in income tax rates, VAT or national insurance before 2020. It was also announced that anybody working 30 hours on the minimum wage or anybody earning below £12,500 will not have to pay any income tax.
Jane Parry, Managing Partner and Head of Tax at PM+M, says “The follow up on election promises is welcomed but, interestingly, there was no mention in the Queen’s speech of the proposed inheritance tax relief for houses passed down in the family. Hopefully it will appear in the Budget speech on 8 July.”
In his second Budget speech of the year, George Osborne will reveal the Government plans to cut £12bn from the UK’s welfare bill, as well as hopefully firming up on his tax proposals. Nothing substantially damaging to businesses is expected to be announced but, as always, there could be a few curve balls in the Chancellor’s announcements regarding measures to clamp down on tax avoidance. This budget should provide some clarity on what will happen to the Business Annual Investment allowance from 1 January, as the Chancellor was keen to avoid giving a commitment on this in his first Budget speech.
To find out what this means for you and your business, we would like to invite you to our post-election Budget breakfast seminar on Thursday 9 July.
For more information about our free seminar or to book, please click the button below or call Daniel Hill on 01254 679131.