Yesterday the Chancellor announced his Spring 2021 Budget where he confirmed that he had to level with people about the state of the UK economy. Prior to Budget day there were fewer leaks than normal about possible tax changes. There were however announcements prior to Budget day of grants for High Street businesses and the hospitality sector and the widely predicted extension of the furlough scheme.
Below is our analysis, and I will update you further as the Government publishes the specifics of the supports and changes.
CHANCELLOR “LEVELS UP” WITH US ON TAX
Rishi Sunak has chosen a fine line between raising taxes to start paying down the massive Government borrowings but at the same time stimulate economic recovery and save jobs. He was also mindful of pledges made in the Conservative Party manifesto not to raise income tax, VAT and national insurance. So that leaves corporation tax, CGT and inheritance tax…
Maybe he will delay the announcement of significant increases in taxation until later in the year as it is anticipated that there will be a further Budget in the Autumn. By then the economy will hopefully have started to bounce back.
It has already been announced that there will be important consultation documents issued on 23 March which will seek views on future tax changes. That may be when the expected reforms to CGT and IHT will be announced.
