02 Nov Rawlinson & Hunter Share Autumn Budget Briefing
MIA member, Rawlinson & Hunter, has shared the following budget briefing.
For an Autumn Budget lacking in blockbuster headlines, there are many
points of detail in the announcements: tax raids on property, savings, and
the banks’ help to fund the Government’s spending commitments, while
HMRC adopts an enhanced approach to examining the tax affairs of the
wealthy.
In contrast with some recent fiscal events, the build-up to John Healey’s first
Autumn Budget was relatively restrained, with Healey and the Government seeking
to limit uncertainty by flying fewer policy kites in the media wind beforehand.
However, the Government could not resist making several pre-Budget
announcements, namely removing standing charges from domestic gas bills,
reversing the previous Chancellor’s decision to cut the Cash ISA allowance, and
the proposed removal of import tariffs from around 100 supermarket products.
Just like Chancellors before him, Healey has inherited an uncomfortable fiscal
position with his headroom curtailed by ongoing global conflicts, rising inflation,
and an increase in the cost of borrowing.
Healey’s Budget includes a support package for households in the form of a oneoff
£100 energy payment for homes in tax bands A to D, at a cost of £2.6 billion;
a new tax allowance designed to ensure that pensioners with income no higher
than the full new State Pension do not pay Income Tax during this Parliament;
a further postponement in the planned increase in fuel duty for motorists; and a
new First Time Buyer ISA to help people of all ages onto the housing ladder.
To prop up small businesses, the rates relief threshold will rise from a rateable value of £12,000 to £18,000, and the Government is also pledging to reduce the regulatory burden. Alongside this, and to encourage start-ups, entrepreneurs are being offered a new Founders’ Relief, providing a 10 per cent Capital Gains Tax rate on qualifying gains up to £10 million. It was also stated that the Government plans to modernise the tax treatment of foreign sovereign investment.
Read the full briefing here: Rawlinson & Hunter Budget Briefing