Taxpayers will not see a marked change after Budget announcements

That’s the message from Francesca Hutcheson, tax director at Dyke Yaxley Chartered Accountants, in Shrewsbury and Telford.

“Anyone listening to the Chancellor Rishi Sunak could be forgiven for thinking there was not much in the way of tax changes for individuals and businesses.

“The statement instead focused heavily on plans for the UK’s economic recovery, including investment in infrastructure, further support for the NHS, and households on the lowest incomes.”

But Francesca said the tax system had still seen major changes recently with two substantial tax measures already announced this year.

“The increase in Corporation Tax from April 2023 was put forward in the Spring Budget and the new Health and Social Care Levy – an increase in the effective National Insurance and Dividend tax rates – was announced in September.”

Francesca said many individuals would be relieved that Capital Gains and Inheritance Tax remained largely untouched, and that higher rate pensions tax relief had survived another Budget.

“Arguably though, the Chancellor’s best tax raising measure over the last 18 months has been the continued speculation around potential changes to capital taxes.

“Thanks to this uncertainty, we have seen a number of business sales and solvent liquidations happening among our clients, and there was a real frenzy in the run-up to the Budget to get deals completed before the Chancellor presented his speech.”

She said the extension of the £1 million Annual Investment Allowance through to April 2023 would be welcomed by capital intensive businesses, and that firms in the retail and hospitality sectors would be pleased with the further support from business rates reliefs.

“So did this Budget fall flat? Not quite. Producers of sparkling wine will be celebrating the sensible reform of the overly-complex alcohol duty system.

“Taxes on red wine, sherry and port are set to rise, but sparkling wines will now pay the same duty as still wines of equivalent strength.”