EXPERTS EXPECT TORY TAX TURNAROUND
Industry experts expect continuing Chancellor of the Exchequer, George Osborne, to lean upon steady, incremental tax changes and capped thresholds to raise extra revenue, as the new Conservative government strides forward without their coalition with the Liberal Democrats.
Writing in one of Baker Tilly’s weekly tax briefs, George Bull, senior tax partner commented that “tax rises seem inevitable”. This is in spite of pre-election promises made to the contrary. This is not an unexpected move, however, as the Nuffield Foundation point out that we have seen net tax rises of more than £5 billion (in 2015 terms) in the first year of the past five elections.
Though “significant” tax hikes are not expected, frozen thresholds on the highest tax rates as well as stamp duty will continue to act as “hidden tax collectors”, according to Stephen Herring, head of tax at the Institute of Directors, speaking to the Financial Times.
The news will be unsurprising, but disappointing to prospective buyers investing in property beyond the critical £938,000 stamp duty threshold. That said, Vanessa Houlder of the Financial Times notes that these changes will give the government room to “deal with [economic] shocks over the next five years” – which may provide some much needed perspective to the government’s likely about-turn in taxation.
It is important to stress that these are only predictions for now, albeit the predictions of seasoned industry veterans. We will know more in the coming weeks, during which time Osborne is expected to deliver his second budget report of 2015. This move should give us the clearest and earliest possible indication of the Conservative government’s approach to the UK economy as we enter David Cameron’s second term as prime minister. We will update you as soon as we know more.
STAMP DUTY SAVINGS WITH FIDUCIA
No matter which route the government’s taxation policies take under our newly-elected Conservative government, we work with property buyers day in, day out, to appropriately mitigate stamp duty costs on their transactions, with reported savings as high as 60%.
Call the Fiducia team today on 01625 599 200, or through our online contact form, to have any of your questions and concerns taken care of sensitively and professionally.