The new Chancellor has announced that she will deliver her first budget on the 30th of October. While the full details are still under wraps, we’ve been given some clues as to what might be included. Although this is all speculative, it’s worth considering how these potential changes could impact you or your business.

Here are some of the key areas currently being discussed:

1. Addressing the £22 Billion Funding Gap

The government is facing a significant £22 billion funding gap, which means they’ll likely be looking at ways to increase tax revenues. While nothing is confirmed, this could result in higher taxes across the board, so it’s important to be prepared for potential changes.

2. Potential Increase in Capital Gains Tax (CGT)

Currently, Capital Gains Tax (CGT) rates are lower than Income Tax rates, but there’s talk of bringing these two taxes in line. If you’re thinking of selling shares in your business, or even winding it up, you might want to consider doing this before the end of October to potentially avoid higher CGT rates.

3. Possible Changes to Pension Tax Relief

Currently, pension contributions benefit from tax relief up to your annual allowance. However, there are rumours that this relief may be reduced or removed entirely. If you’re planning to make pension contributions, it might be wise to act before the 30th of October to maximize your current tax benefits.

4. VAT on Public School Fees

This one has been confirmed: VAT will be introduced on public school fees. If this affects you, be cautious of any schemes promising to help you avoid this cost, as they are unlikely to withstand scrutiny from HMRC.

Let’s Talk

We understand that these changes might feel overwhelming, but we’re here to help you navigate them. If you’d like to discuss how any of these potential changes could impact you, please reach out to your client manager. We’re always happy to chat and help you plan ahead.

Stay tuned, and we’ll keep you updated as more information becomes available.