With yesterday’s announcement from the Chancellor Sajid Javid we take a look at what we can potentially expect to see.
Manifesto Pledges
One of the main pledges from the Conservative’s manifesto was an increase in the NI threshold from its’ current level at 8,632 to 9,500 and this could potentially be confirmed in this budget. The manifesto also mentioned an increase to R&D tax credits of 1% along with an increase to the structures and buildings allowance. A further pledge in the manifesto mentioned a 3% stamp duty land tax surcharge for Non-UK residents buying UK residential property.
The party has also promised not to increase income tax rates, VAT or NI. The original plans for the corporation tax rate to be reduced further have been scrapped and is likely to remain at 19%.
Other potential changes
Mr Javid has never hidden his dislike of the inheritance tax rules so look out for potential changes to this controversial tax. Any changes to this legislation could have major tax planning opportunities.
We could potentially see a change to the annual allowance taper and its’ interaction with pensions which has affected high-earning workers in the NHS. Since the reduction in tax free pension contributions in 2011, those who have income over £150,000 see their £40,000 tax free pension allowance reduced by £1 for every £2 they earn down to a minimum of £10,000. This has caused some leading NHS workers to turn down extra work or overtime rather than risk a retrospective pension tax charge leading to even more stress on the already failing NHS.
