Pre-Budget Predictions
What could the pre-budget mean for you? Our experts predict that the Chancellor may make announcements on some or all of the following:
- Following the Arctic Systems ruling, we could see proposed legislation or a consultation on the taxation of family businesses
- Proposals in relation to non domiciles: this issue has enjoyed heated debate in the media of late, particularly in context of high profile foreign billionaires. Will the government feel pressured to review current tax treatments and introduce new legislation or will they consider less radical options?
- Possible reduction in the basic rate of income tax: it remains to be seen whether the Chancellor will act upon Gordon Brown’s last budget announcement that there was a political desire to reduce the basic rate of income tax down from 22% to 20%
- Planning gain supplement: we could be told the rate of tax that will be applied as well as clarification on how this tax will operate
- Green taxes: we may well see the VAT fuel scale charge for business fuel linked to CO2 emissions; a possible increase in air passenger tax and increases in the vehicle excise duty for ‘dirty’ cars
- Anti-avoidance legislation: there is a possibility of further anti-avoidance legislation particularly on the VAT front
- IHT nil rate band: again as subject of much debate in recent months; we may see an uplift of more than already announced for 2008/9 and 2009/10.
The Chancellor, Alistair Darling, will deliver his pre-budget report on Tuesday 9 October at 3.45pm. Bookmark this page for our response to the Chancellor’s statement. Our pre-budget report will also be available for download.
