Date Confirmed For Budget 2020 – What To Expect

The first Budget under Prime Minister, Boris Johnson, has been set for March 11^th, slightly later than had been anticipated, and leaves little wriggle room for Scotland’s finance minister, Derek Mackay, should he choose to make any radical policy deviations from the rest of the UK.

If the pre-election tax pledges are to be believed, then we could be in for a radical budget.  Capital taxes, specifically Capital Gains Tax and Inheritance Tax, are likely to be on the radar as there have been recent consultations undertaken.  Pre-announced changes to employment status, ‘IR35’, will take effect from April 2020 and we wonder whether the Chancellor, Sajid Javed, will look at the dividend tax rates etc. to determine whether the balance between self employment and employment can be improved.

The corporate tax does seem set to stay low, however, it’s clear that any transactions and planning currently underway may be under threat.  Head of EQ Taxation, David Morrison, commented,

“Clients who are planning or in the middle of any purchases, sales, reconstructions etc, should consider the risks of a radical Budget.  It is our view to complete as many transactions as possible before the Budget, in order to ensure that known legislation is being used as the basis for implementation”.

If you wish to discuss current or potential transactions, please email our EQ Taxperts or contact a member of our specialist Corporate Finance team via [email protected].