Archive 21.3.16 Author: Robert Maas

CBW’s Budget Summary – How does it affect you?

Archive 21.03.2016 Author: Robert Maas

CBW gives its considered opinions on the Budget and importantly, how it affects you. 

Yet more ill-conceived tax changes from George Osborne. It is hard to discern what, if anything, his tax policies actually are.

We have a 25% increase in SDLT on commercial property dressed up as a reduction to help small businesses. Help for young people to save for their first home while at the same time discouraging foreign developers from building houses for sale rather than for rent.

Changes to the rules on personal services companies to hit the BBC and Channel 4 but not ITV, Sky and BT with whom they compete for talent.

Riding roughshod over international treaties because we can get more tax a bit earlier by ignoring them rather than renegotiate them in a civilised manner.

You can almost hear the scraping of the tax barrel when you have a change to the estate duty rules, a tax that was abolished over 40 years ago, to collect tax on items for which estate duty was deferred but the object has somehow got lost.

We are not surprised that mistakes in the legislation constantly come to light when it is bulldozed through parliament at the rate that George favours, but we are depressed at how many of the changes this year are to correct mistakes he made in last year’s two Finance Acts.

We also wonder what parliament, which has traditionally strongly opposed retrospective legislation, is going to make of a proposal to tax loans made perhaps 10 or 20 years ago by pretending they are somehow income earned in 2019.

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About the Author

Robert Maas

Tax Consultant +44 (0)20 7309 3800