The Chancellor has announced that the next Budget will be in March 2021. Speculation about tax increases centre on capital gains tax, however income and inheritance tax could also be on his list for reform or increases. Higher rate pension tax relief looks like it may well be abolished in favour of a relief nearer to the 20% basic rate.
As highlighted previously, there is an opportunity to look at tax and financial planning measures ahead of the Budget. The delay is good news particularly if you are thinking about:
- Share restructures or share incentive schemes for the senior team
- Family succession or reorganisation of the business
- Extracting cash from the business
- Maximising pension scheme contributions
- Inheritance tax mitigation planning
- Selling an asset and realising proceeds
Act Now to mitigate against what is expected to be a tougher tax regime. Please speak to your usual Clarke Nicklin contact or Paul Draper/Tony Jakara (Tax Partners) or Scott Herbert (Financial Planning Partner).