With speculation mounting amongst commentators ahead of Chancellor Rachel Reeves’ first budget on 30 October, Wbg, one of Scotland’s leading independent specialist accountancy, advisory, audit, and tax firms, is advising entrepreneurs to seek professional advice about anticipated capital tax rises in advance.
The advice follows figures from the Office for National Statistics (ONS) showing that UK government borrowing hit a higher than expected £3.1bn in July prompting speculation that rises in Capital Gains Tax (CGT) and Inheritance Tax (IHT) could be on the cards.
Gavin Brown, Senior Tax Manager at Wbg, said: “The government has gone on record as saying that it will not hit the ‘working man’, so the chancellor is unlikely to change income tax, National Insurance or VAT.
“However, the fact that no such commitment has been voiced in relation to CGT and IHT has led to speculation that these will be subject to change in the budget.
“Although it is not possible to provide definitive advice on any potential changes at this stage, it is important to begin preliminary discussions with your advisor, so that you can consider your options over the coming weeks in advance of the budget.
“Once changes are known, you may need to act promptly to implement any potential planning opportunities, prior to the legislative changes coming into effect.”
Whatever changes transpire, it seems likely that the overall tax burden is set to increase, so entrepreneurs should seek professional advice in advance about managing their exposure to tax changes.
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