The Chancellor, Sajid Javid, has announced Wednesday 11 March 2020 as the date for his first Budget. The press release accompanying the announcement said the Budget would ‘deliver on the government’s promises on tax, to help tackle the cost of living for hard-working people’.
Chris Sanger, head of tax policy at EY, speculated that the first Budget of this new government may not feature the uncomfortable decisions that a healthy parliamentary majority often brings. ‘With a feeling of renewal as parliamentary stalemate is overcome, the chancellor may not want to divert attention to tax rises just yet’, Sanger said.
Two revenue-raising changes already announced for the coming April are cancellation of the planned 2% cut in corporation tax and introduction of the UK’s new digital services tax (DST) at 2%. However, while the UK’s rate of DST is lower than the 3% introduced in France, Sanger warned that the chancellor ‘will be well aware of the US Treasury’s threat of tariffs to address what it considers “is unreasonable or discriminatory and burdens or restricts US commerce”’.
SDLT increases for foreign property buyers and a new anti-tax avoidance and evasion law are also on the government’s agenda. We may see a review leading to an overall reduction in tax reliefs and incentives, Sanger suggested, ‘even as the Budget increases the rates for R&D and structures and buildings’.
‘With the Budget this year reverting back to the March Budgets that we were used to before chancellor Hammond, it will be interesting to see if chancellor Javid will carry on the tradition of raising taxes following electoral success’, Sanger mused.
The Treasury invites submission of Budget representations either via a short survey, or by email, no later than Friday 7 February (see bit.ly/2tyqSjh).
The Chancellor, Sajid Javid, has announced Wednesday 11 March 2020 as the date for his first Budget. The press release accompanying the announcement said the Budget would ‘deliver on the government’s promises on tax, to help tackle the cost of living for hard-working people’.
Chris Sanger, head of tax policy at EY, speculated that the first Budget of this new government may not feature the uncomfortable decisions that a healthy parliamentary majority often brings. ‘With a feeling of renewal as parliamentary stalemate is overcome, the chancellor may not want to divert attention to tax rises just yet’, Sanger said.
Two revenue-raising changes already announced for the coming April are cancellation of the planned 2% cut in corporation tax and introduction of the UK’s new digital services tax (DST) at 2%. However, while the UK’s rate of DST is lower than the 3% introduced in France, Sanger warned that the chancellor ‘will be well aware of the US Treasury’s threat of tariffs to address what it considers “is unreasonable or discriminatory and burdens or restricts US commerce”’.
SDLT increases for foreign property buyers and a new anti-tax avoidance and evasion law are also on the government’s agenda. We may see a review leading to an overall reduction in tax reliefs and incentives, Sanger suggested, ‘even as the Budget increases the rates for R&D and structures and buildings’.
‘With the Budget this year reverting back to the March Budgets that we were used to before chancellor Hammond, it will be interesting to see if chancellor Javid will carry on the tradition of raising taxes following electoral success’, Sanger mused.
The Treasury invites submission of Budget representations either via a short survey, or by email, no later than Friday 7 February (see bit.ly/2tyqSjh).
