Spring Budget 2020-tax predictions from the market

Spring Budget 2020-tax predictions from the market

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Tax experts
  • Jenny Doak (JD), partner at Weil
  • Erika Jupe (EJ), partner at Osborne Clarke
  • Gideon Sanitt (GS), partner and Maudie Leach (ML), senior solicitor at Macfarlanes LL
  • Liz Wilson (LW), partner at Taylor Wessing

LW: This could be the most exciting Budget for many years (and of course it is the first Budget in over a year).  We have formally left the EU and are in the transitional period. There is a newly elected government and an even newer Chancellor.  This is likely to be a highly political Budget: putting our best foot forward for the future and ongoing trade negotiations. Of course, it could be radical, or it could be a steadying of the ship but my view is that given the various competing pressures, it is likely to be a combination of both approaches through the announcement of consultations but with a few immediate changes being announced.

GS and ML: It has been a while since a Conservative government had such a strong majority going into a Budget. For many, the upcoming Budget on 11 March will be a poignant one, given it is taking place following the UK’s departure from the EU. Others, however, may see it as heralding a brave new world.

The government’s plan to reduce corporation tax from 19% to 17% from April 2020 had already been scrapped. The Conservatives’ manifesto included a tax lock applying to VAT, income tax and NICs, so material reforms in these areas look less likely.

CGT is not constrained by the ‘tax lock’ in the Conservative manifesto, so we might see the Chancellor announce a rise in CGT rates. We could also see the introduction of a relief similar to taper relief to encourage long-term holdings. That said, CGT is not a significant revenue raiser. In practice, the Chancellor will need

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