What are ‘fairer’ taxes?
Having read Nick Clegg’s interview in The Times it appears that his aim is not to reduce taxes but to redistribute them. He stated that he expects the Government to reduce the tax burden on middle and lower-income families and to legislate for a rise in capital gains tax for higher earners.
What is by no means clear is to how many of the Liberal Democrat aims will actually be part of the next Budget. The Conservatives took a different stance in their manifesto. Some compromises have already been announced and more will be required as the manifestos had different tax aims and aspirations.
The expectation in the accountancy profession is that the next Budget could involve some major changes and there is a hope that some clues will be given in the anticipated spending review.
Tax planning is always tricky and at the moment the element of foresight required is huge – is it better to plan based on what you think might happen or wait and see what happens when it maybe too late to change anything. If you do take action you may bring forward liabilities. If you do not the ultimate liability may be higher. Caught between a rock and a hard place springs to mind!
We will be blogging on SME Plus Blog and Tax Plus Blog on Budget day. If you do not already subscribe to our blogs click here for SME Plus Blog or here for Tax Plus Blog to ensure you get our comment and analysis as and when it happens.
Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552.
Date: 19th May, 2010
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