Sohail will be going down to London on the 18th March to assist with preparing the newsletter summarising the major Budget changes.
As there is a General Election looming within weeks of the Budget there will be a political judgment on the budget proposals.
Tax Avoidance
This topic is now very much established in the public consciousness as the perception that there are one set of rules for ordinary citizens and another set of rules for large companies still exists. Given the political dimension expect some legislation to make tax avoidance less attractive.
Help for small businesses
We are regularly being told that this is the driver of the UK economy so any help would be appreciated for the SME sector. Perhaps that help may be expressed in the form of extending the Capital Allowances Annual Investment Allowance.
At the current time, the Annual Investment Allowance will fall to £25,000 on the 31 December 2015. We suggest that if you are thinking of capital expenditure plans you should spend the money before 31 December 2015.
Tips
We recommend that if you are a higher rate tax payer you maximize your pension contributions before 5 April 2015 as Labour have indicated that they would reduce higher rate tax relief on Pensions.
Similarly with dividends, if your income is already above £150,000 you should contact us as Labour have indicated that they will increase the highest rate of tax from 45% to 50%.
