In Monday’s announcement, the Chancellor revealed that October 30 would be the first Budget Day under the new Government, and that tax rises are being prepared to address a significantly larger fiscal problem than they had expected to inherit.
The announcement follows months of economic turbulence, marked by rising inflation, global market volatility, and increasing public sector deficits. The government, having initially claimed they were optimistic about containing the fiscal shortfall through moderate measures, now admits that the scope of the problem is far more extensive than their earlier projections indicated. Critics say this was always their plan and they have been fully aware of the scale of the problems for months and should have been more honest with the public about tax rises prior to the election.
Anticipated Tax Increases
Though specifics remain undisclosed, the government has confirmed that tax increases will be a major component of the budget in 3 months’ time. Economic analysts predict that, due to the triple lock, these rises can only affect certain taxes including inheritance tax (i.e. death tax) and capital gains tax (i.e. the tax paid on selling property and/or shares).
Public and Political Reactions
Opposition parties and public groups have been vocal, demanding transparency and urging the government to ensure that the burden does not disproportionately affect low- and middle-income families. The political discourse is expected to intensify as Budget Day approaches, with debates focusing on the balance between fiscal responsibility and penalising hard work and years of sacrifice by entrepreneurs.
Preparing for October 30
As the nation braces for October 30, both businesses and individuals are preparing for the potential impact. Advisers are recommending reviewing tax planning strategies and staying informed about potential changes. Business owners are being advised to assess the possible effects on their retirement and succession plans.
How Can Qubic Help?
To navigate these potential changes, Qubic offers tailored tax planning services. Our expertise can help mitigate the impact of higher taxes and leverage current reliefs effectively. The window of opportunity to leverage current tax rates and reliefs is narrowing, and the time to act is now.
We understand that the uncertainty surrounding tax changes can be challenging, and we are here to help you.
For more information on our tax planning services and to discuss your options with one of our team, simply click the link below:
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Call: 0191 232 2001
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