Speculation is gathering pace about the content of this Autumn’s Budget. The exact date of the Budget has not yet been announced, but it is expected to be in November.
Recent press articles have suggested that the Chancellor will introduce a range of measures to increase tax revenue, including:
– Increasing corporation tax;
– Increasing capital gains tax – possibly to income tax levels;
– Restricting tax relief for pension contributions for higher rate tax payers;
– Increasing dividend tax rates; and possibly also
– Some form of taxation on company accumulated cash balances.
Clearly, at this stage, we do not know if all of this will happen or when such measures would take effect from. It would, however, seem likely that some tax generating measures will be introduced. Therefore, it is worth starting to consider what planning maybe appropriate for you in the run up to the Budget.
Sensible planning steps might include:
– If you have the cash, you might consider accelerating your pension contributions pre-Budget;
– Accelerating this year’s dividends to before the Budget; and
– If you are due to make a capital disposal at a sizeable gain, considering whether it can be crystallised before the Budget.
In addition, whilst there has been no specific mention of inheritance tax in recent articles, consultation earlier this year would suggest that some changes may be on the cards. Accordingly, if you are considering business succession and passing shares to your family, now may be the time to do so and take advantage of the currently generous inheritance tax and capital gains tax rules.
We will release more details as and when more information emerges on likely changes. In the meantime, if you would like to discuss any of the above, please speak to your usual PM+M contact.