The effect of the pandemic The Chancellor said that the pandemic has “fundamentally altered” people’s lives. The Chancellor added that more than 700,000 people have lost their jobs, the economy shrank by almost 10% last year and borrowing is up. But the economy “will recover”, Sunak says, and that, once recovery begins, the government will begin fixing the public finances. The economy is forecast to…

Although there is not an autumn Budget this year, there have been some significant tax announcements last week contained in a written Parliamentary statement given by Jesse Norman, Financial Secretary to the Treasury, on 12 November. In line with the tax policy-making framework, the Government consulted on a number of tax policies announced at Spring Budget 2020. The Government has published responses to some of…

Published on 12 November, the Office for Tax Simplification (OTS) has published its first review of capital gains tax (CGT). This new report, written in response to the Chancellor’s request earlier this year, is the first that the Office of Tax Simplification (OTS) has devoted to CGT. The Chancellor asked the OTS, in particular, to ‘identify opportunities relating to administrative and technical issues as well as areas…

Covid-19 will be a catalyst for the next wave of entrepreneurship and innovation. The world will need to adapt, with speed and agility: innovative entrepreneurship, thinking outside of the box,  will provide a greater range of options for generating the “new normal”. But the speed of response, and hence change, is vital. One of the boxes that previously has prevented many innovative changes to happen…

The Chancellor today announced a new range of measures to help businesses and individuals through the next six months. More details will emerge over the coming hours and days. The Chancellor said the backdrop to the current announcements are: “Nurture recover by protecting jobs” There is a permanent adjustment to the economy Any financial plan needs to adapt and evolve as the Covid-19 pandemic evolves…

Capital gains tax – are we likely to see major changes? The Chancellor has recently asked the Office of Tax Simplification (OTS ) to carry out a review of CGT to identify simplification opportunities. Remember that CGT is paid by individuals and trusts; companies pay corporation tax on chargeable gains. The call for evidence is in two stages: the first stage seeks high-level comments on the principles…

Following the Chancellor’s Summer Statement yesterday I posted a blog simply summarising what he had announced. Now, nearly 24 hours later, I’ve had a chance to reflect on what was said, and I can’t for the life of me believe that he’s got it right. I don’t normally comment on political issues but confine myself to analysing the tax and business implications of fiscal and…

A range of measures to boost the UK economy in the wake of the Covid-19 pandemic has been announced by Chancellor Rishi Sunak. They include VAT cuts for the hospitality sector, a Job Retention Bonus for companies, a Stamp Duty Land Tax cut and an ‘Eat Out to Help Out’ discount. In a statement to the House of Commons, the Chancellor outlined plans to give businesses…

HM Treasury and HMRC have set out new timelines for tax policy consultations and other work in the light of the current Covid-19 crisis. As I comment further below, this is welcome news but I would have gone much further… In summary: • There will be a three-month extension to many consultation deadlines to give stakeholders time to submit their views • The extension will…

This was the first Budget of the new government, the first Budget for 18 months, and the first Budget of the new Chancellor, Rishi Sunak. It followed a Bank of England interest base rate cut from 0.75% to 0.25% (50 basis points) announced earlier in the day. Whilst the first Budget of a new Parliament usually sets the tone for the next few years, often…