| The Office for Budget Responsibility (OBR) is now preparing its economic and fiscal forecasts, while speculation grows | The Chancellor said the Budget will be built on “fiscal discipline” to give businesses and families greater stability | The most useful approach is to look beyond the headlines and not to get swept away with speculation |
It’s that time of year again – the Budget is on the horizon, with Chancellor John Healey confirming that his first Budget will take place on 28 October. The Office for Budget Responsibility (OBR) is now preparing its economic and fiscal forecasts, while speculation grows over what measures could be announced.
The Chancellor has said the Budget will be built on “fiscal discipline” and provide businesses and families with greater stability to plan for the future.
Over the years we’ve learnt the most useful approach is to look beyond the headlines, not to get swept away with speculation, but to focus on what we do know. There are already important changes we know about and can plan for, such as the IHT pension changes and the ISA reforms, all previously announced.
Beyond these known changes, little is expected to be confirmed in advance, but a handful of taxes may be in the spotlight, having featured in speeches and wider policy discussions.
- Capital Gains Tax (CGT) – one area commentators have highlighted as a possible candidate for reform
- Inheritance Tax – the PM has previously spoken about reforming IHT including replacing the current system with a broader levy on estates
- Income Tax, VAT and National Insurance – the government has indicated it does not intend to increase the main rates but we’ll wait and see as Mr Burnham has previously commented about how unpopular the Income Tax allowance freeze has been.
For now, resisting speculation is key. A review of your financial plans ahead of the Budget can help ensure your affairs remain well positioned under today’s rules. We can then revisit your plans once the announcements are made. When it comes to tax planning, certainty is usually a better foundation than speculation.
Tax treatment depends on individual circumstances and may change in future. The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority does not regulate Will writing, tax and trust advice and certain forms of estate planning.