Summer Budget

The Chancellor of the Exchequer has announced that there will be a Summer Budget on Wednesday 8 July 2015.

Barnes Roffe LLP will be holding a number of Budget seminars and details of the Budget will be posted on our website.

Summer Budget Predictions

The Prime Minister announced during the Election campaign that the Conservative Party will not increase VAT, Income Tax or National Insurance (“NIC”) if elected. This still leaves room for manoeuvre, most notably as regards Capital Gains Tax (“CGT”).

Here are some of our tax predictions:

  • The basic rates of tax applying to chargeable gains for individuals (currently 18% and 28%) will be increased.
  • The rate of CGT for disposals qualifying for entrepreneurs’ relief will remain at the current rate of 10% but there will be further tightening of the rules in an attempt to prevent their application to venture capitalists and “private equity” investors.
  • The rate of Annual Investment Allowance (“AIA) was due to be reduced to £25,000 (currently £500,000) from 1 January 2016. The planned decrease will either be deferred or the new AIA limit will be set at a much higher level than the planned £25,000 limit.
  • Higher rate tax relief for contributions made into qualifying pension schemes will be abolished or reduced for high-earners.
  • The inheritance tax (“IHT”) nil rate band will be substantially increased from its current level of £325,000 – perhaps to £500,000, which means £1 million for a married couple. The headline rate of IHT will probably remain at 40%.
  • Tobacco duty will be significantly increased.
  • There will be a raft of anti-avoidance rules introduced across all the major taxes, with particular emphasis on multinational businesses and non-UK domiciled individuals.
  • There will be a review of business rates with a view to their fundamental reform in due course.

We look forward to seeing you at one of our seminars.

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