Gherson Solicitors comments about the Autumn Budget

Tim Crook, Head of Tax at Gherson Solicitors, comments about some of the details from today’s Autumn Budget (27 October).

“The Chancellor of the Exchequer, Rishi Sunak, presented his long awaited Autumn Budget this afternoon.

“There was much comment beforehand about tax rises to help pay for the cost of the Covid-19 pandemic. The possibility of an increase in CGT rates so that they are more in line with income tax rates was discussed as was the possibility of the removal of the CGT uplift on death.

“Some tinkering with inheritance tax was also mooted and although a change to the headline rate of 40% was thought unlikely, some reducing of exemptions and some cutting of reliefs was thought to be on the cards.

“Reductions in the annual and lifetime pension allowances was also thought a possibility.

“None of this transpired in the end and no changes to income tax, capital gains tax or inheritance tax were announced. However, an increase in the minimum wage and some changes to Universal Credit were announced which will benefit lower earners.

“However this needs to be seen in the context of the major changes that have already been announced this year, the most significant of which was the 1.25% increase in National Insurance for both employees and employers to fund the NHS and social care. A 1.25% increase to dividend tax was also announced at the same time in September.

“A ‘Green Budget’ ahead of COP26 was expected but little was announced on that front other than the introduction of a new investment relief to encourage businesses to adopt green technologies like solar panels.”

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