Following the completion of the coalition agreement between the Conservative Party and the Liberal Democrats, a brief announcement was made today regarding the intentions as they related to taxation. We expect that a Budget will be arranged for around the end of June 2010.

The proposal likely to cause the most activity amongst accountants and clients alike is in relation to capital gains tax. For the disposal of non business assets, it would appear that there will be a huge rise in the current rate of 18% with many analysts predicting that the rate could be aligned with the highest rate of income tax, currently 50%. With other proposals regarding increasing personal allowances towards £10,000, national insurance, and a further commitment to clamping down on tax avoidance, these promise to be dynamic times.

Tax partner, David Morrison, commented "with so many tax changes likely over the lifetime of the current Parliament, never before has it been so important that the accountancy profession gets closer to its clients and takes action before it is too late. Delaying action could see many individuals and businesses being caught by exceptionally high tax rates."