Commenting on Chancellor Rachel Reeves’ first Budget speech, Anthony Andreasen, Tax Director at Gosforth-based RMT Accountants & Business Advisors, says: “The government has been clear in the need to raise taxes to fund investment in improving public services and restore balance to the public finances, and the substantial contribution that businesses will make towards reaching this objective has now been made clear.
“The widely-expected increase in the Employers’ National Insurance contribution rate will have a direct impact on businesses’ finances, recruitment and investment capacity.
“On the plus side, the immediate increases in the various rates of Capital Gains Tax could have been much greater, meaning that capital transactions will still attract a significantly more favourable tax rate and should hopefully not cause too great a concern in the M&A community.
“The changes to the Inheritance Tax regime, and particularly the inclusion of inherited pensions and changes to business and agricultural property reliefs, are hugely significant and will require anyone who expects to be impacted by them to be reviewing their personal tax situations as soon as possible.
“The investment that was announced in HMRC’s systems and staff resources signifies the focus being placed on maximising the tax revenues that can be directed into the Treasury’s coffers and highlights the importance of businesses and individuals ensuring their tax affairs are in proper order.
“Transport businesses will be relieved that the fuel duty rate is to remain unchanged next year, with the retained tax incentives for electric vehicles giving businesses continuing encouragement to invest in upgrading their vehicle fleets.
“The North East’s High Streets will hopefully benefit from the 40 per cent relief on business rates for the retail, hospitality and leisure industry, with the cut of duty on draft alcohol will be welcomed by the region’s pub operators.
“The first increase in personal income tax and NI thresholds in several years are welcome, although this won’t come into effect for another three years and so won’t have any immediate impact.”