DS Burge & Co’s Post

What's really happening with your taxes? 🤔 'One of the key weapons in the government’s armoury for raising revenue without the bad press that goes with putting up headline taxes is a phenomenon known as fiscal drag.' I was interested to read the article by Faith Glasgow for interactive investor, which provides a helpful explanation on this important topic. #Taxation

Watch this space. With commitments made to not raise income tax / VAT / National Insurance it does not leave any room to plug the gaps in the public finances. Are new wealth taxes on their way?

Following the Labour party's victory, significant changes to the tax landscape are anticipated. An emergency budget is expected by September or October, with no increases in income tax rates and planned pension reforms. National Insurance Contributions for employees will remain unchanged. Business taxation will see a new roadmap, retaining full expensing and the Annual Investment Allowance. Corporation tax will be capped at 25% for large profits, but changes may be forthcoming for smaller profits. VAT rates will remain steady, though private school fees will now incur VAT. Capital Gains Tax will see the closing of the carried interest loophole, and inheritance tax will maintain current rates, ending offshore trust usage for avoidance. Stamp duty land tax for non-UK residents will rise from 2% to 3%, hinting at possible future increases for UK residents. Stay tuned for further updates as more details emerge. #ElectionResults #TaxUpdate #BusinessTax #IncomeTax #VAT #CGT #InheritanceTax #StampDuty

So what 'easy' tax steps could the new Labour Government take to drive forward UK Economic Growth? It has long been recognized that the UK tax system is unduly complicated and that - in many cases - it actually does nothing to encourage taxpayers (workers) to develop their own skills and / or to take those potentially riskier jobs with 'high growth' (but high risk) businesses. As such, if Rachel Reeves, the new Chancellor of the Exchequer (Treasury Minister) is serious about supporting the growth of people's 'economic capital, it is important that she focusses on issues such as the provision of tax relief for personally incurred training courses. The below hyperlink provides a summary of the various areas from an employment tax / personal tax perspective which Ms Reeves should be pro-actively addressing, to drive forward the UK economy. Whilst all of these steps do have a direct 'tax cost' to them, the reality is that the cost of 'doing nothing' (and avoiding these areas) is - in my honest opinion - likely to be even more expensive for UK Plc in the longer-term. #generalelection #labourgovernment #taxchanges https://lnkd.in/ekCWbFbg

Forget increases in CGT rates and tightening of IHT Business Relief rules, could a new Wealth Tax be on the horizon? 💰 The below article sits behind a paywall (apologies), but what is interesting is Labours landslide election win comes just months after 4 ministers from separate G20 member countries publicly agreed that a 2% wealth tax should be levied on the worlds 3,000 billionaires. 💵 Is this the start of something big? I suppose only time will tell ⏰ .................... #PKFSC #PKFGlobal #Tax #TransactionsTax #DealsTax

Tax Tips: from capital gains to council bills, our expert sets out the opposition’s plans

As the new government considers fiscal reforms, one policy should remain untouched: the Capital Allowance Act. With economic resilience at stake, we believe Capital Allowances will likely remain an essential pathway to savings, safeguarding UK businesses amidst broader tax changes and fiscal shifts. Read more: www.hmatax.co.uk

Will Labour increase gains tax rates: and if so how should this affect your investment strategy? Whilst Labour pledged during the election campaign that they would not increase income taxes during the coming parliament they didn’t mention anything about gains tax. Not surprisingly, the investment community fears that gains tax is an ‘easy target’ for a government that needs to raise as much tax revenue as they possibly can to finance their growth ambitions. #labour #incometax #TAX #investment #changes 

Another day, another manifesto – this time it is Labour's turn - and again containing few real surprises on tax. Pledges not to increase the rates of national insurance, VAT and income tax, and for corporation tax to be capped at 25%, are repeated; the absence of a similar commitment on capital gains tax (CGT) sparked immediate commentary, although Rachel Reeves has stated that there are currently no plans to increase CGT rates. Long heralded promises to close 'loopholes' for carried interest and abolish the non-dom regime 'once and for all' are also repeated but without any new detail – on the latter the press release in early April in response to the Budget announcements remains Labour's last (published) word. Other revenue raising measures include an additional 1% SDLT surcharge for non-UK residents buying residential property and applying VAT and business rates to private schools. Change is signalled, with a review of the pensions landscape and the promise of a roadmap for business taxation – but a commitment to only one major fiscal event a year. #GeneralElection #NonDom #Tax

The Scottish 🏴󠁧󠁢󠁳󠁣󠁴󠁿 tax system is absurdly complicated, mainly just to allow the £28 per year “Scottish advantage” (for •most• taxpayers🙄) to be crowed 🐦⬛ about. £28 per year…. Meanwhile the “Scottish disadvantage”, the extra tax faced by those earning above £30K, is certainly a legitimate policy choice. But will the extra tax be wisely spent so as to demonstrably improve public services? 🤔 And what impact will the employer NI hike (not devolved, therefore purely a Westminster “all UK” decision) have on wages and employment 🏭 in Scotland? Lots going on😱. Commiserations to all you Scottish taxpayers😀 Thanks to ICAS - The Professional Body of CAs / Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP for the pictured analysis showing the year on year Scotland impact of tax/NI changes and Sco v rUK. (Caveat: table applies to non-savings income only, because savings income in Scotland is subject to UK (not Scottish) rates and bands, more #complexity🙄) #Scotland #tax #ScotBudget