The Chancellor has made no secret of the need to bring in the cash, and the Government's massive majority gives them a mandate to make major tax changes in the October Budget. What should we expect, and what can you do now to protect your money?
Whilst none of us has a crystal ball, there are clues on potential tax changes in the October budget that we can't ignore, for example:
- The appetite to boost growth: businesses are likely to be less impacted; the focus will be on personal taxes
- Changes to the main tax rates have been ruled out; expect lots of smaller measures
- Labour want to level the playing field; expect wealth tax reliefs reducing Capital Gains Tax and Inheritance Tax to be scrutinised.
A few quick and easy steps now could leave you slightly more comfortable with what's on the horizon.
Firstly, check over what money you have, and where it is. Be wary of having all your eggs in one basket, or on being overly reliant on the availability of a particular relief.
Secondly, look at your motivations. Why do you hold certain investments, are they still working for you?
Third, if you're thinking about making some changes, consider your options carefully. Do you have the chance to invest more in businesses, can you give to charity? Reducing any over-reliance on the availability of personal reliefs such a Business Property Relief on AIM portfolios against Inheritance Tax, and seeking to reduce your personal estate may stand you in good stead.
And finally, remember that it's the oldest trick in the political book: lead people to expect the worst, then when it's not so bad after all they're actually much more receptive.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
