Rumoured tax changes that did not make the final budget…
At a recent tax update course, the speaker mentioned that the Treasury drafted various proposals to change certain aspects of our tax system in case the Government decided to include them within the budget in order to raise extra revenues.
In the end, little of tax significance went though, presumably because the government is extremely wary of upsetting too many people at a time when they are somewhat vulnerable.
Some of the potential changes that were apparently being considered included further reduction to the dividend allowance, a tightening of the Entrepreneurs’ Relief rules restricting entitlement, a tightening of rules enabling business property relief and agricultural property relief (BPR and APR) from being obtained; specifically investments in AIM listed companies might not obtain BPR status and land that is let to farmers might not obtain APR status in the future. Further rumours indicated further restrictions on tax relief for pension contributions was also being considered.
Therefore, for anyone who might be seeking to take advantage of these areas of tax relief, it could be a case of use it before you lose it.