COLUMN: What to expect from the Budget

At long last, the budget is on its way, writes Christine Newitt, director at Duncan & Toplis.

Duncan and Toplis' Christine Newitt.
Duncan and Toplis' Christine Newitt.

Two chancellors have been and gone since the last budget, and there has been a lot of speculation about what will be announced on March 11 and what it all means for the country.

Here are our predictions to help make sense of some of the expected changes and how they might impact business, organisations, and individuals in the UK and in Lincolnshire.

My hope is for a reform of pension tax relief. It has been a target for many chancellors over the years and it appears that the restriction of relief from 40 per cent to 20 per cent is being considered again by the Treasury.

At one time a maximum of £225,000 could be put into a pension plan and tax relief obtained at the highest rate of tax.

This has reduced significantly over time with the maximum available for tax relief being £40,000 and for the very high earners this is reduced to £10,000.

Head of probate Graeme Hills anticipates a change in inheritance tax. Presently, inheritance tax forces estates to pay 40 per cent tax on assets worth more than a £325,000 threshold (or £475,000 if the asset is a home that’s left to children or grandchildren, or £950,000 if the tax break is inherited by a spouse or civil partner). Many business assets, including farmland, can be excluded from the calculation of taxable worth, but it’s possible that may change.

Director Simon Shaw thinks that businesses should look out for changes to Capital Gains Tax.

Anyone selling a business asset or shares should carefully consider their position now to see if accelerating a sale might be beneficial before any potential changes to Entrepreneurs Relief are introduced.

To speak to one of our experts today got to www.duntop.co.uk.