In the coming months we will start to see how our new government intends to change the UK tax rules to further its economic growth agenda.
Whatever they decide to do, readers who presently benefit from tax and/or business planning strategies, should be prepared to revise their plans as fiscal changes are announced.
For example, if you are considering the disposal of assets at a profit, then any gain may be subject to Capital Gains Tax (CGT). If the Chancellor changes the CGT rates, perhaps by treating capital gains as income for tax purposes – or by removing or reducing present CGT reliefs – your after tax profits may not be at a level to satisfy your plans.
The first opportunity to alter tax or other business related matters will likely be the Autumn Budget. This year will be Rachel Reeves first announcements at the despatch box, and she may introduce far reaching changes.
This does mean that there is a short period before the Autumn Budget when we will be subject to present legislation. If you are considering radical changes to your business or financial circumstances in the next year would it be sensible to consider moving transactions forwards as a hedge against negative changes come September/October 2024?
We recommend keeping a weather eye on your planning options. If you are about to buy or sell business or personal assets, please call so we can consider your options. Double guessing what the Treasury may or may not do is not an exact science, but we can be fairly confident that changes are on the way, the fiscal goal posts will be moving.