Spring Budget 2021
The Spring Budget is currently scheduled to be published on Wednesday 3rd March 2021 and, provided Rishi Sunak does not postpone this as with the Autumn budget, there may be some significant tax changes introduced.
Back in the summer, Rishi Sunak called for a review into Capital Gains Tax (CGT) and the Office of Tax Simplification (OTS) recently released its recommendations. Other taxes are likely to be on the Chancellor’s radar too.
Recommendations for the reform of Capital Gains Tax include; a reduction to the current CGT allowance, the alignment of CGT with Income Tax rates and the removal of CGT uplift on death.
The OTS has reported that implementing these recommendations could double the number of people paying CGT, raising revenues of £70 billion over the next five years.
The OTS has also made recommendations that could hinder the ability to claim Business Asset Disposal Relief and suggested adjustments to the rules surrounding Inheritance Tax.
The Budget will set out the next phase of the plan to tackle coronavirus and protect jobs and will be published alongside the latest forecasts from the Office for Budget Responsibility (OBR).