Last year I was looking forward to Ted Lasso on Budget day. On this year’s Budget Day, 6 March 2024, it is also National Dentists Day! Tough one Budget or Dentist? Why can’t it be 3 March 2024 which is What If Cats and Dogs Had Opposable Thumbs Day?
Anyway I’ve gone off topic. Budget days do that to people. What can we expect when the chancellor Jeremy Hunt stands up? Firstly, the International Monetary Fund has warned that any tax cuts need to be fully funded, so he will not be able to go full Liz Truss. Despite this, apparently he has £12 billion to play with which means there may be some giveaways. However a 2 pence cut in Income Tax would eat into all of this. There is also the possibility of a 1% cut in National Insurance for employees and rumours that Inheritance Tax will see some cuts persist. I can’t see that Inheritance Tax will be abolished completely, but who knows in these times.
The chancellor is allegedly considering the axing of the rules concerning non-domiciled UK tax resident taxpayers. Depending on their personal circumstances, these individuals can benefit from not being taxed on their overseas income and capital gains or paying a fixed charge. However, I am not sure how well this will go down with the present Prime Minister given that his wife allegedly benefits from these rules. I think Rishi’s dinner will definitely be in the bin when he gets home with that news should it go through.
The Budget like last years may turn out to be a non-event. However, if the chancellor is going to give some generous tax cuts next week this could be an indication that the General Election will take place before the Autumn Statement due later in the year. Even with this, given that there is a chance we may see a change of government this year any changes must be considered temporary.
Whether you are watching the Budget or going to the dentist on 6 March, be careful out there.