Phillip Hammond has a reputation for being dull and boring and not someone who is going to get the party going. This year’s budget is going to be set against a backcloth of the Brexit negotiations. Those negotiations are clearly delicately positioned, and Mr Hammond will want a steady as she goes budget. He will also likely wish to recognise the mood of the nation which appears to be increasingly feeling that older people are enjoying tax breaks at the expense of the younger generation. We are not expecting any major changes in the Budget, but we are expecting some changes to perhaps redistribute the tax that is collected.
Pensions
There may be changes in the tax system which in effect limit tax relief to basic rate only. This will allow the tax relief which is then redistributed to say reduce taxation on younger people. This could be in the form of reduced University fees.
Diesel Cars
These vehicles now appear to be public enemy number one and therefore there could be more pain for owners of this type of vehicle with additional tax increases. The government is committed to improving air quality, and will consult on a detailed draft plan in the spring which will set out how the UK’s air quality goals will be achieved, the official Spring Budget document confirmed. Alongside this, the government will continue to explore the appropriate tax treatment for diesel vehicles, and will engage with stakeholders ahead of making any tax changes at Autumn Budget 2017.
Venture Capital
There are some very attractive tax reliefs on various schemes where the treasury may wish to scale back the tax relief given. Therefore, popular schemes like SEIS could see curbs on the tax relief available.
Student Loans
In a bid to reach out to the younger generation there may be an uplifting of the student loan threshold where they have to be paid back, perhaps up to £25,000 from the current £21,000.
We need a period of stability ahead of the UK Brexit which is still scheduled for March 2019.
