Tax planning advice for year end 2020/21
Last month, the Chancellor confirmed that the next Budget will be held on 3 March 2021 – almost a year since the last Budget.
Whilst we are expecting to receive more information on the economic support available in light of the coronavirus pandemic, will we see tax rises – despite the governments pledge not to raise Income Tax, VAT or National Insurance during their current term of office?
The Chancellor has indicated that reforming Inheritance Tax and Capital Gains Tax may be simpler than introducing a Wealth Tax; or maybe it’s time to cut tax relief on pension contributions?
We envisage that any tax changes will be gradual, and we expect that the announcements on 3 March 2021 will be followed up by consultations, with a view to the implementation of possible legislative changes in 2022.
With this in mind, we would advise you to take advantage of current tax rates, reliefs and allowances while you can.
Take a look at our ‘Year-End Tax Guide 2020/21’ before calling your usual CKLG contact to discuss tax planning opportunities available.