Tax Hopes for the Next Budget
The Chancellor has confirmed the budget will be held on Wed the 11th March. So, for a bit of fun, we’ve asked our Tax Director Tom Foster what tax changes he’d like to see. So, without much further ado, Tom’s tax hopes for the next budget are:
Tax Hope 1:
I would like some of the unnecessarily complex areas to be addressed. In particular, I would like the nasty marginal rate bands that exist when allowances and benefits are clawed back to be done away with.
Tax Hope 2:
High earners to keep the tax free personal allowance, accepting it could be paid for by bringing the additional tax threshold down to £100,000 or £125,000 to compensate.
Tax Hope 3:
I don’t like the rules for calculating the pension annual allowance. I would like everyone to have the same annual allowance again, albeit perhaps slightly reduced.
Tax Hope 4:
I would also like to see changes to the way that Child Benefit is clawed back.
Tax Hope 5:
Finally, I would welcome a reversal of the decision to restrict tax relief on the borrowing costs incurred by buy to let landlords.
These changes would help people better understand what tax charges they should be incurring. They would also help avoid unnecessary tax charges from being incurred simply due to a lack of understanding. The financial industry has a responsibility to educate and inform, and advisers steer clients away from such pitfalls on a daily basis. So any extra measures that can be put in place to better safe-guard people can only be a good thing.
As always, if you would like to speak to an adviser, please do give us a call on 01243 767 469. Alternatively, you can email us from our contact page, and an adviser will be in touch.