Background
Last week the Chancellor of the Exchequer, Sajid Javid, announced that the next budget will be on 11 March 2020. Mr Javid has said that this budget “will set out ambitious plans to unleash Britain’s potential, level up across the UK and usher in a decade of renewal.”
Detail
In the run-up to the election, we reported on some of the main tax policies set out by the Conservative Party. These included:
- Corporation tax rate remaining at 19%
- Increase in the R&D tax credit rate form 12% to 13%
- No increases in income tax, National Insurance or VAT in the next 5 years.
- A review and possible reform of Entrepreneur’s Relief
- An additional 3% Stamp Duty Land Tax (SDLT) on properties purchased by non-UK residents
With the Conservative government overwhelmingly in power now, we have been looking more closely at the Conservative manifesto.
The document states that some work to support entrepreneurship has been “spectacularly successful“ such as the Seed Enterprise Investment Scheme and the Enterprise Investment Scheme which will continue in the next Parliament. It goes on to say however that other measures have not fully delivered on their objectives and so there will be a review and reform of entrepreneurs relief.
What is not clear is whether this review will be by way of open consultation or whether new legislative changes will be immediately proposed. Either way, what is certain is that some change is very likely.
In connection with capital gains tax it is also to be noted that the manifesto was silent on freezing the current rate of CGT. This is in contrast to the statements made in respect of income tax, national insurance and VAT. Similarly omitted was any comment on inheritance tax rates. It is possible therefore that there will be some changes to the rates of capital taxes.
If you would like more information on future tax planning or how Budget changes may affect you, please contact our Tax Director, Jenny Marks.
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