Most people will now have heard the relevant bits of the budget given in Parliament today by the Chancellor, and lots of labour reaction to it. On balance I feel it was a very good budget given the circumstances. The rise in VAT will be unpopular but at least this brings us more into line with the rest of Europe. It has been 19.6% in France for some years and they are coping with it – so will we.
At least all the doom and gloom mongers that have been raging in the the media these past weeks about huge and sweeping changes to Capital Gains Tax were proved wrong. The only change to Capital Gains Tax is the increase, for HIGHER TAX PAYERS ONLY, from midnight tonight up to 28%. Most people will not be affected by this and those selling their businesses are seeing the 10% band increasing from £2million to £5million.
The Tax Office have set up various webpages to explain the budget changes very clearly so there is no point in me simply re-gurgitating all that was said. If you are interested in the details please visit the HM Revenue & Customs budget area for all the information.
I think the budget shows the new government are serious about tackling the incomprehensible mess that Labour left the country in and they have taken some bold first steps in dealing with it. Let us hope this signals the return of commonsense to parliament and the start of a new, prosperous future for us all.
If you are still worried about any aspect of the budget and how it will impact on your own business, please do not hesitate to ring me to discuss it in total confidence on 0800 047 0731.