Stephen Newman, Head of the Company and Commercial team at Ramsdens, has featured in an article on Business Leader looking at what UK businesses can expect from the Autumn budget in 2021.
Chancellor of the Exchequer Rishi Sunak will deliver the Autumn Budget and Spending Review on Wednesday 27 October, with issues surrounding income, national insurance and taxes set to be of topic.
Ahead of the announcement, Stephen provided the publication with his predications on what he expects businesses need to prepare for.
He commented: “The level of activity in the mergers and acquisitions’ market suggests that the UK economy, if not buoyant, is recovering from the enforced idleness of the last 20 months and is, indeed, attracting investment from mainland Europe and USA. The Government has borrowed a lot of money that needs to be repaid. Businesses should not expect the overall tax take to go down; therefore, in this year’s Budget, we already know that it will become more expensive, in particular, to employ people.
“Residential developers are also facing a new tax to ensure that large developers make a fair contribution to the Government’s cladding remediation costs. There is a suspicion, however, that the surge in the economy this year is fueled in part by pent-up demand and it is difficult to assess how robust (or otherwise) the UK economy presently is.
“It would be fair to say that UK businesses are facing (and adapting) to a number of challenges at present as we learn to live with coronavirus, and I think that the Chancellor will be reluctant to make many more changes to UK tax rates other than those that have already been announced. I do think that the basic rate of capital gains tax will rise, perhaps to 30%, but he may elect to retain business asset disposal relief in its current form with a view to providing some encouragement to entrepreneurs.”
To read the article in full, please visit www.businessleader.co.uk.