The Chancellor has announced the date for the first post-Brexit Budget. What can we expect?
Announcement. Sajid Javid said “This will be the first Budget after leaving the EU. I will be setting out our plan to shape the economy for the future and triggering the start of our infrastructure revolution”.
What happens in the event of “no deal”? If Britain leaves the EU on 31 October without a deal, emergency measures will be announced but the full Budget will be delayed by a number of weeks.
What tax adjustments can we expect? The Chancellor is committed to increasing public spending and stimulating the economy, so tax changes are on the cards. Corporation tax rates are already set to reduce to 17% from April 2020. The Office of Tax Simplification published two reports on inheritance tax this year, at the request of the previous Chancellor, Phillip Hammond. The reports made some practical recommendations, such as bringing reliefs for businesses in line with capital gains tax reliefs and reducing the period for gifts to escape inheritance tax from seven years to five. However, at the Conservative party conference earlier this month, Sajid Javid expressed that he is against inheritance tax and said that changes are on his mind. This has led the press to speculate about radical changes to the inheritance tax system, such as scrapping the tax altogether.