A tax specialist says it is highly unlikely that taxes will be cut in the Budget, but businesses will hopefully be spared further significant rises after the recent announcement of the increase in National Insurance.
Chancellor Rishi Sunak will present his Autumn Budget to Parliament on Wednesday, October 27.
Anne Rose, Head of Tax at Burgis & Bullock, believes that businesses would welcome radical changes to business rates to support recovery from the pandemic – but would settle for certainty and stability too.
However, the area that may see a hike is capital gains tax, with the Office of Tax Simplification reporting on the possibility of aligning the rate with income tax.
Anne said: “It’s interesting that the Chancellor chose to announce the Health and Social Care Levy weeks in advance of the Budget.
“Businesses we work with hope that that means that the bad news is out of the way and hopefully the early announcement wasn’t a precursor for further tax increases on business.
“The challenge for this Budget was always going to be balancing the need for business recovery with managing the national debt.
“The recovery has been going well but not quite as well as Government would have liked – with worrying issues in the supply chain and with price increases for businesses.
“This autumn the long-awaited review into business rates will be published. This may arise in the Budget and a change, positive or negative, could be make or break for many small and medium sized businesses.
“Capital gains tax could be an area of focus. The annual exemption at the moment is £12,300, but this may be reduced or other reliefs restricted. We could also see reductions in the lifetime allowance for pensions or the higher rate income tax relief for contributions.
“Consultations have also been on-going around R&D relief after the March Budget. The Government is keen to encourage innovation across all sectors and we would expect any change in R&D relief to be a positive one for businesses.
“Businesses need stability and certainty in the tax landscape, and that is what the clients we work with day-to-day really desire from this Budget as it will allow them to forward plan their recovery strategies.”
Warwickshire-based firm Burgis & Bullock has offices in Leamington, Nuneaton, Rugby and Stratford-upon-Avon.
It will be hosting an online Budget webinar on Friday, October 29 at 10am. The virtual event will see tax specialists from the accountancy firm assess the Budget and be on hand to answer any questions on the changes.
By holding the event two days after the announcement, it will give time for their experts to drill down into the detail and deliver professional guidance on the policy which will affect businesses most.
To sign-up to the Burgis & Bullock Online Autumn Budget Webinar visit www.eventbrite.co.uk/e/online-autumn-budget-webinar-2021-tickets-177997404027