Autumn Budget may herald tax changes
Businesses and individuals considering tax efficient investments should act before the new Autumn Budget.
Andrew Cowe,Tax Manager at Brearley & Co comments, “Until relatively recently, the Budget generally announced changes from the start of the following year, allowing taxpayers to utilise reliefs or allowances before they were lost. However in recent years there has been a trend towards the Chancellor changing things with immediate effect”.
“Although we believe there won’t be major changes this time, Budget predictions have been wrong before, and we wouldn’t wish clients to be caught out. There is talk of money to ease student debt, and that would need to be found from somewhere”.
“There’s speculation that tax reliefs for small business investment will be cut, but that alone will not raise enough”, warns Cowe. Although spending cuts are likeliest, don’t rule out other tax increases”.
“In summary, we don’t recommend clients change their existing investment plans. However if you’re already considering pension contributions, or investing in plant and hoping to claim Annual Investment Allowance, then it may be prudent to do so now, ensuring you are not “caught short” by tax legislation changes”.
Andrew Cowe – Tax Manager – Brearley & Co