Date confirmed for Autumn Budget 2021

Chancellor, Rishi Sunak, has announced that the next Budget will be on Wednesday 27 October, around a month earlier than had been anticipated.

The announcement on the funding of social care yesterday was a clear signal of intent that the UK Government is looking at the funding of the pandemic. So what might be on the radar?

Previous articles about the direction of tax have focused on capital taxes, i.e. Capital Gains Tax (CGT) and Inheritance Tax (IHT). Among the changes possible in this respect are:

• Possible removal of Business Asset Disposal Relief (formerly Entrepreneurs’ Relief)
• A raising of CGT rates, with the possibility to align Income Tax and Capital Gains Tax rates
• Removal of certain Inheritance Tax reliefs

Without making a political point, yesterdays social care funding announcement has proven that the UK Government is willing to breach the election promise that assured taxpayers of no rises in Income Tax or National Insurance, so it is possible that these rates could come under threat. Remember too the pre-announced rise in corporation tax to 25%, from 19%, will take effect from 1 April 2023.

Head of EQ Taxation, David Morrison, commented,

“It’s clear that paying the piper is now the Government’s focus and therefore we can expect tax raising measures in the next two or three Budgets. Recent consultations in CGT and IHT indicate that this will be the primary target though whether the Chancellor considers that radical changes at the end of next month are too soon is perhaps the unknown. Anyone with transactions in progress might well wish to try to complete these before the Budget.”

Whatever the announcements are in the Autumn Budget, our EQ Taxperts will be on hand to offer support and guidance. If you’d like to discuss your circumstances ahead of the Budget, please get in touch by calling one of our offices or emailing taxation@eqaccountants.co.uk.