It is an inevitable fact that the Chancellor of the Exchequer Rishi Sunak, will be looking for ways to increase the tax take to cover the unprecedented financial support provided to businesses, workers and self-employed.
Many may recall in March he warned self-employed individuals that the price of the measures introduced would include the future loss of their tax and national insurance perks and said ‘if you all want to benefit equally from state support you must all pay equally in the future’.
Therefore, it should not be a surprise that he has written to the Office for Tax Simplification (OTS) calling for a review of capital gains tax (CGT) in the run-up to the Autumn Budget. Predictions include the removal of some CGT exemptions and reliefs as well as aligning CGT rates with income tax rates or at least increasing the rate.
We were all expecting some IHT reforms in the Summer Budget after the OTS published a review of IHT. The review called for the seven year gifting rule to be reduced to five years and discussed whether AIM relief should continue. There were no such announcements then, but it is likely that they will feature in the Autumn Budget, which will be bad news for wealthy investors and possibly the self- employed.
We will be keeping an eye on announcements and will publish a summary of the 2020 Autumn Budget.
OUr summary of the 2020 Summer 'mini budget' is available here.
Menawhile if you would like to discuss your tax situation please contact us.