Are you looking forward to Wednesday 15th March? I am, as the new series of Ted Lasso is out that day. However it also the day of this year’s Spring Budget. Given the events of the last year it could be a quiet budget, which may not be a bad thing.
Although the chancellor has more money to play with than previously forecasted, I think it is unlikely that we will see major tax cuts. In fact, it looks like the planned increase in the Corporation Tax rate from 19% to 25% will still go ahead, as will cuts to Research and Development Tax Relief.
Rumours still do the rounds that Capital Gains tax rates will align with Income Tax rates and that pension tax relief will be a straight 30% rather than the various different effective rates we have at present depending on whether you are a basic or higher rate tax payer.
However, putting tax to one side, what people really want to see is help with their monthly bills now and hopefully the chancellor can provide more under the Energy Support Scheme.
Another area that could help families is to revamp the High Income Child Benefit Charge. This affects those in receipt of Child Benefit where one partner has taxable income of over £50000 and means that some or all of the Child Benefit has to be repaid. The limit of £50000 has not changed since the charge was introduced by then chancellor George Osbourne in January 2013 and has caused many families financial issues over the last 10 years. In addition, it doesn’t seem right that a couple earning £50000 each do not have to repay any child benefit, but a single parent earning £60000 does.
Let see what happens and I am sure that Ted could come up with one line that captures this last year, but we will just have to wait for that.