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As we move towards what will be the last Budget of this Parliament, we will be bringing you the news, ‘leaks’ and rumours ahead of the Chancellor’s Budget announcement on Wednesday 6th March.

How will the Budget affect you? Your business? Your family?

Updates will be displayed in chronological order, with the most recent news first. We will share links to the relevant articles in the media.

This is just what we are hearing on the grapevine, as we are neutral politically.

 

Tuesday, 5th March

With just a day to go until Chancellor Jeremy Hunt presents the government’s final Budget of the Parliament, it looks likely that the freeze on fuel duty will stay in place for a 14th consecutive year along with a 5p cut to petrol taxes introduced in 2022 to ease the cost of the global energy crisis.

 Inheritance tax

While the government has hinted at a cut or abolition of IHT in the past, this seems to have been ruled out of the Budget tomorrow.

 SME businesses 

Last month the Federation of Small Businesses (FSB) wrote to the Chancellor to ask if he will consider an upgrade to employment allowance and reduce annual national liability from £5,000 to £6,500 to reflect the increase in the national living wage. The FSB also asked if he would consider raising the VAT threshold from £85,000 to £100,000 to encourage growth.

Does the Chancellor have the fiscal headroom to do this? Or will the measures be more focused on the individual rather than business?

 Budget announcement tomorrow

We will be watching the announcements carefully tomorrow and will post live on social media as measures are announced.

 Find out what it means for you and your business

Join us over lunchtime next Wednesday, 13 March for our post-Budget webinar and to find out how you can make the most of year-end tax planning too. You can register your free place here.

 

Monday 4th March 2024
Weekend update by Masum Ahmed

With just two days until the Budget, further predictions of what to expect appeared in the media over the weekend.

From a cut in income tax rates to changes that will affect furnished holiday lets, it wasn’t exactly a tsunami of leaks, but it did feel like the Treasury wanted to test the water.

While this is all in the realm of conjecture, some of the possible changes eyed by the Chancellor Jeremy Hunt this Wednesday can be summarised as follows:

  • Cuts to income tax rate and/or changes to tax thresholds. Either could cost several billions.
  • Further cuts to national insurance contributions
  • Cuts to some tax reliefs
  • Changes to furnished holiday letting rules
  • Help with the higher income child benefit charge – current set at £50,000.
  • New tax on vapes
  • Amendments to the taxation of non-domiciled individuals (see our post below)
  • Changes to the current inheritance tax rules

Jeremy Hunt mentioned yesterday on the BBC that any tax cuts to be balanced with borrowings.

Follow us live on social media on Wednesday for bulletin updates and register here for our post Budget webinar debrief and year-end tax advice.

 

Thursday 29th February 2024

Non dom set for review in the Budget – a seismic change

Masum Ahmed: “It is rumoured that Chancellor Jeremy Hunt is looking to make changes to the current tax benefits for non doms (people who are considered non-domiciled in the UK).

“At the moment non-doms enjoy a special status where they have the option to pay tax on overseas income and capital gains.

“This could potentially be seismic depending on how far the Chancellors goes.”

View the story here.

 

Monday 19th February 2024

 The news last week that the UK had slipped into technical recession and the shrinking of the ‘fiscal headroom’ the Chancellor previously thought he had to play with, has led to a slew of articles over the weekend debating whether there will be tax cuts in the Budget.

The Daily Mail reported that sources close to the Treasury had pushed back on the idea that the Chancellor cannot afford the 2p cut to income tax that had previously been rumoured.

A ‘government source’ told the Mail that personal taxes would be a priority.

The Express took the opposite view on Sunday and said that the Chancellor will do the opposite and ‘hike taxes again’.

The opposing views illustrate that it’s all a bit too early to call this one!

 

Friday 16th February 2024

The BBC is reporting that Chancellor Jeremy Hunt is considering a cut in public spending in order to provide tax cuts that his party and supporters are calling for.

Keep up to date with our latest news on Twitter, Facebook and LinkedIn.

McBrides Chartered Accountants