With less than a week to go until the next Budget, on 3rd March 2021, speculation is rife as to what Chancellor Rishi Sunak may announce. With the pandemic affecting the country for more than a year, there are likely to be numerous Covid-related support measures announced, with many rumours including:
- Stamp Duty Holiday and furlough scheme extensions
- Support for young people including help for first time buyers, and traineeship scheme support
- Capital gains and Corporation tax increases to help pay for the debt incurred by the pandemic
- Support for businesses with business rates and VAT relief extensions
- Eat Out to Help Out 2
For many months now, rumours have abounded about the ways in which the government might seek to raise funds. The most frequent suggestions have included:
- Raising income tax or freezing thresholds
- Changing capital gains tax
- A universal and annual ‘wealth tax’
- Changing corporation tax.
In fact, no tax seems to be without its speculation and Deloitte has provided a useful summary of the potential impacts.
But with no definite ‘leaks’ to the press, all the rumours remain exactly that. Some are even suggesting that the tax reforms will need to take longer to process and implement, so perhaps ironically, despite all the speculation, not that much may change for the tax sector after all!
Whatever happens in the 2021 Budget on March 3rd, we will keep you informed, and update our advice and guidance accordingly.