The scheme was announced to help both small and medium sized business recover from the negative financia
There is no doubt that 2020 is proving to be massively different to any of the predictions given by tax advisers at the start of the year. After three years of wall to wall Brexit coverage, a worldwide pandemic has changed the business landscape beyond recognition and there is the inevitable speculation amongst business leaders that there will need to be an increase in taxes… but what will this look like?
In July, Chancellor Rishi Sunak commissioned the independent Office of Tax Simplification to review how Capital Gains is paid by individuals and smaller businesses. This has naturally led to a nervousness around whether this will lead to a Capital Gains Tax increase. Of course, this is purely speculation and every year around the presentation of the annual tax budget, rumours of tax changes are rife, many of which never materialise.
Other areas which might see changes are the various reliefs available for selling our main residences, our businesses and certain other assets, such as vintage cars, which at the moment are exempt.
We should not forget that there have already been some changes in April 2020 to Capital Gains Tax on residential properties, with the key change being that tax is now due to be reported and paid within 30 days of the completion date. In the grip of the pandemic, the Government did announce a relaxation to this rule with penalties only being charged for completions after 31st July 2020.
What should the public do to prepare?
Firstly, there is no doubt that the Government will be watching the economy very carefully before making changes to taxes. It is important not to take action based on speculation or rush into a decision without all of the facts.
Our advice is that people should take the opportunity to review their affairs and seek professional help if needed.
How can we help?
We have dedicated Personal & Corporate Tax departments, who offer a free no obligation meeting. In our initial meeting we learn about your plans for the future and identify areas in which we can help you to meet your short and long-term financial goals.
If you would like to arrange a meeting, please contact us on our details below.
(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk
