Chancellor Rishi Sunak Announces Budget for 3 March 2021
The Budget is an annual announcement from the Chancellor of the Exchequer about the Government’s plans for spending and taxation for the upcoming tax year. Next year’s Budget will outline plans for the 2021/22 tax year. This will be Rishi Sunak’s second Budget announcement after he took over the role from Sajid Javid on 13 February 2020.
This is a crucially important Budget as we wait to see how the Chancellor is proposing to deal with the massive deficit which has arisen due to the Covid 19 pandemic. There has been much speculation that tax rates could increase to help reduce the deficit, particularly around Capital Gains Tax and some commentators are suggesting a wealth tax could be introduced.
With an increase in Capital Gains Tax rates possible, it is a sensible time to review property and investment portfolios and consider whether this is an appropriate time to crystallise gains. This would have the effect of locking in the current relatively attractive Capital Gains Tax rate of 28% for residential property and 20% for most other assets (18% and 10% respectively for gains falling into the basic rate tax band).
Our tax specialists will be watching the Budget and will provide relevant announcements on our website and social media shortly after the Budget is announced, to make sure you are fully up to date.
If you wish to discuss your Capital Gains Tax position then please don’t hesitate to get in touch.
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