What can we expect in the Summer Budget on 8th JulyThe Chancellor will give his first Budget for the new Government on July 8th. It will be different in character to previous budgets delivered by George Osborne as it will be his first budget without the influence of the Liberal Democrats. However, during the Election Campaign the Conservative Party made various commitments not to increase Income Tax, VAT or National Insurance. Politicians can of course change their mind but it is a lot more difficult when you are returning to government to claim that some new information has just come to your attention. Therefore, on that basis if we take the Government at its word the scope for major changes to the tax system would appear to be limited.
During the Election Campaign substantial cuts in Government expenditure were promised but the detail of where the cuts would fall was not evident. There is no doubt that the Chancellor will announce detailed substantial cuts to government expenditure in his Budget report but to someone running a business this will be of limited interest.
So what can we expect in this emergency budget which will affect someone running a business.
We would expect some changes in Capital Gains Tax which will raise more tax. This would involve a potential tightening up of the rules of those individuals who are eligible for Entrepreneurs Relief.
What the rule changes will be remains to be seen, however, this would appear to be the most likely area of any change.
We will advise you of how any changes will affect your business and how we can best advise you to get the best out of the tax system.
