Ahead of the Spring Statement announcement tomorrow, Blick Rothenberg partner, Nimesh Shah, discusses the shift away from the ‘two budget’ regime.
We are not expecting any major announcements concerning personal finance/tax at the Spring Statement. The Treasury has said that the Chancellor will provide a short (15-20 minute) update on the country’s finances. If this is the case, it will avoid having what is effectively two budgets in one year, and numerous changes introduced, which led to increased complexity. The ‘two budget’ regime had become largely the norm over the last ten years.
With the move to an Autumn Budget, we are expecting several consultations to be published following the Spring Statement. The consultations are likely to open until the summer, and the Treasury will then consider the feedback and provide the draft legislation at the Autumn Budget. This is a more sensible process, as it avoids short consultation periods and important legislation being unnecessarily rushed.
I am not aware of any specific consultations that will be published, but I am expecting something around inheritance tax, and possibly a review of inheritance tax reliefs. The Chancellor has recently asked the Office of Tax Simplification to review the current inheritance tax regime, so inheritance tax appears to be on his radar.
We will be watching the Spring Statement closely and reviewing and commenting on any consultations that are published.
For more information, please contact Nimesh Shah