Covid, Budgets and Tax (25/02/21 )
Amongst the many traditional annual events that has been postponed due to Covid is the Budget. Chancellor Sunak’s first one is now due on the 3rd March, and we are interested to see what it will bring. There has been much comment in the media about income tax, national insurance (a second income tax in all but name) and VAT being left alone, but there has been talk of rises in CGT and Corporation Tax. From an economic viewpoint, raising taxes while simultaneously indulging in reflationary Keynesian policies demonstrates a degree of incoherence, but there are other considerations that just economics at play here. We do think that some taxes could rise, but we also think that there will be further changes in coming years, and that there is a fair chance that inheritance tax, which covers death taxes and gift taxes, will undergo a fundamental overhaul. We are happy to discuss our views with our clients – if you wish to know more, do please get in touch.