The new budget is due to be read out in the House of Commons on Wednesday 11th March 2020, laying out the country’s finances for the year. Rishi Sunak, who was installed as chancellor less than three weeks ago, will have to rethink key parts of the upcoming budget that benefit us all. Sajid Javid – our previous chancellor – was said to have created a well-developed budget. However, Sunak is likely to rewrite some of Javid’s rules in the short time he has left.
So what changes are there likely to be?
Entrepreneurs Relief
We have previously written about entrepreneurs’ relief which you can read here. Sunak is expected to target entrepreneur’s relief, where people selling their businesses are only required to pay capital gains tax at 10%. Scrapping entrepreneur’s relief entirely would give the chancellor extra room to maneuver a budget. If you are considering selling your business in order to take advantage of these savings before any changes take place, we can help. Click the green button for free consultation with one of our specialists.
Transport
Greg Shapps, the transport secretary, recently announced that £10m of funding should be spent on electric vehicle charging points in residential streets. This would be a great step forward if the UK wants to achieve its target of emitting virtually zero carbon by 2050. This could possibly be confirmed in the new budget.
Social Care
Affordability of social care has hit crisis level in the UK. The Queens Speech noted that no one should have to sell their home in order to pay for social care – something that is unfortunately a reality for many. The new budget is the chancellor’s opportunity to allocate funding to this process and make real change to the well being of many lives.
Inheritance Tax
There have been calls to cut inheritance tax. It’s currently set at 40% if the property is valued over £325,000 hurting a lot of beneficiaries. It is proposed to be brought down majorly to 10%, whilst lowering he amount of tax-free allowances and setting a cap of £30,000 on cash gifts during a lifetime. Have a read of our page on inheritance tax here with frequently asked questions answered in detail for you.
With one week to go, what changes do you predict will be made with the new budget?
If you have any questions, feel free to contact us on 02085300720 or email enquiries@nordens.co.uk
