PROMOTION Tax changes on the horizon Tax is increasingly under scrutiny given the Chancellor's need to address falling revenues. The cancellation of the Autumn Other options to raise revenue include a wealth tax, or a 'solidarity' tax on other income, either of which could be possible without breaching the Government's manifesto tax Budget was in line with the political consensus that long term changes to the tax system should not be made immediately. There are, however, hints of potential changes appearing in an increasing number of reports, and the question is therefore not whether or not taxes will need to be raised, but when. The form and timing of any changes is of course unknown, but the possibility that the focus on the tax system results in no changes seems remote. We should expect any new tax regime, understandably, to impose a higher burden on taxpayers in some form or another. The costs of the pandemic will, after all, have to be paid for somehow. lock pledge. Subject to investment decisions, some individuals may be considering accelerating planned transactions while rates are known and remain low. This is not without the Increasing capital gains tax ("CGT") is often discussed as an easy win for the Chancellor, as the rates are so risk that new rates may be different from those expected, or that changes are backdated. If any of these issues are pertinent to you or your business, or if you would tike to discuss planning opportunities, then we have professional advisers with a depth of experience across taxation, financial planning and much lower than those on income. The ability to carry forward losses could be restricted, as could exemptions and holding over gains and, particularly, the Personal taxes on income risk damaging investment management. existing automatic uplift on death. CGT, the economy more than, say, taxes however, generates relatively little revenue for HMRC, although rates could still end up being aligned with income tax in the name of simplification. Inheritance tax ("IHT") is another tikely this would involve backtracking on the area for change, if only because a reform was already in the Chancellor's mind. A flat-rate "gift tax' is not out of the question; but perhaps more likely might be changes to relief on lifetime gifts, which are currently generally exempt from IHT. The challenge for the Government, however is, how to raise revenues without stifling economic growth. on property and consumer taxes. Second homes could therefore be an alternative area for the Government to target, as indeed could VAT, although Manifesto pledge. Edward Emblem Tax Partner, Smith a Williamson LLP t: 0148) 407139 e: edward.emblem@smithandwilliamson.com Now & When Smith & 9Williamson Get practical support today, prepare for lomorrow. so you can smithandwilliamson.com By necessity, this beiefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing. The tax treatment depends on the individual circumstances of each client and may be subject to change in future. Rates of tax are those prevaling at the time and are subject to change without notice. Local offices acros the UK, Ireland and Channel Istands. Smith a wilamson LLP Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activitles. A member of Nexta International, a leading. global network of independent accounting and consulting firms. Smith & Willamson LLP is part of The Tiney Smith & Wlamson Group. O Tiney Smith t Wamson Limited 2020 Lak PROMOTION Tax changes on the horizon Tax is increasingly under scrutiny given the Chancellor's need to address falling revenues. The cancellation of the Autumn Other options to raise revenue include a wealth tax, or a 'solidarity' tax on other income, either of which could be possible without breaching the Government's manifesto tax Budget was in line with the political consensus that long term changes to the tax system should not be made immediately. There are, however, hints of potential changes appearing in an increasing number of reports, and the question is therefore not whether or not taxes will need to be raised, but when. The form and timing of any changes is of course unknown, but the possibility that the focus on the tax system results in no changes seems remote. We should expect any new tax regime, understandably, to impose a higher burden on taxpayers in some form or another. The costs of the pandemic will, after all, have to be paid for somehow. lock pledge. Subject to investment decisions, some individuals may be considering accelerating planned transactions while rates are known and remain low. This is not without the Increasing capital gains tax ("CGT") is often discussed as an easy win for the Chancellor, as the rates are so risk that new rates may be different from those expected, or that changes are backdated. If any of these issues are pertinent to you or your business, or if you would tike to discuss planning opportunities, then we have professional advisers with a depth of experience across taxation, financial planning and much lower than those on income. The ability to carry forward losses could be restricted, as could exemptions and holding over gains and, particularly, the Personal taxes on income risk damaging investment management. existing automatic uplift on death. CGT, the economy more than, say, taxes however, generates relatively little revenue for HMRC, although rates could still end up being aligned with income tax in the name of simplification. Inheritance tax ("IHT") is another tikely this would involve backtracking on the area for change, if only because a reform was already in the Chancellor's mind. A flat-rate "gift tax' is not out of the question; but perhaps more likely might be changes to relief on lifetime gifts, which are currently generally exempt from IHT. The challenge for the Government, however is, how to raise revenues without stifling economic growth. on property and consumer taxes. Second homes could therefore be an alternative area for the Government to target, as indeed could VAT, although Manifesto pledge. Edward Emblem Tax Partner, Smith a Williamson LLP t: 0148) 407139 e: edward.emblem@smithandwilliamson.com Now & When Smith & 9Williamson Get practical support today, prepare for lomorrow. so you can smithandwilliamson.com By necessity, this beiefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing. The tax treatment depends on the individual circumstances of each client and may be subject to change in future. Rates of tax are those prevaling at the time and are subject to change without notice. Local offices acros the UK, Ireland and Channel Istands. Smith a wilamson LLP Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activitles. A member of Nexta International, a leading. global network of independent accounting and consulting firms. Smith & Willamson LLP is part of The Tiney Smith & Wlamson Group. O Tiney Smith t Wamson Limited 2020 Lak