First Budget of the new Government
George Osborne has announced that he will deliver his first Budget on 22 June starting 4 weeks of rumour and speculation.
It seems to be generally expected that the Capital Gains Tax rate of 18% will be increased – but how high? And when? Will Mr Osborne dare to backdate the rise to 6 April 2010? Some commentators believe the rise will be effective from Budget Day – resulting in a flurry of capital transactions as taxpayers try to avoid the rise. Another suggestion is that the Annual Exemption – currently a generous £10,100 per individual per year – will be drastically reduced.
Another area of speculation is Corporation Tax. The Conservatives have pledged to reduce the main rate of CT to 25% - down from the current 28%. But how can Mr Osborne afford this? Will he increase the small company rate to 25% to compensate – or will he abolish the Annual Investment Allowance (whereby the first £100,000 of capital expenditure each year is given 100% tax relief)?
Either of these will cause hardship to the many small companies in Cumbria already trying to survive despite the recession and the recent floods.
Whatever, you can rest assured that robinson+co’s team will be analysing the Budget as it happens. A resume will be available on the website by 8am on Wednesday 23 June, and we will be reviewing the affairs of all our clients to ensure that anything that can be done to alleviate the tax burden, will be done.
Please contact, in the first instance, Victoria Bishop on 01900 603623, if you require further information.