Monthly Archives: October 2018

RU baking for Macmillan
September 2018

A big thank you to the team at The RU Group for joining in Macmillan’s World’s Biggest Coffee Morning.

In true “Bake Off ” style, staff at The RU Group got busy cooking up some tasty treats for everyone to enjoy to raise funds for Macmillan Cancer Support.

Macmillan understand how cancer can affect people’s whole lives – health, money, family, job, everything. And, after more than 100 years of caring, they understand that the most important thing is to treat people as individuals, not patients. They are on-hand to provide support to anyone and everyone living with cancer.

We were only too happy to support Macmillan by hosting a coffee morning to raise vital funds to help them continue their amazing work.

Here are a few pictures of the cakes we all enjoyed.

Special thanks go to our team of bakers.

 

Forward planning for the Budget
October 2018

With the next Budget approaching at the end of October, it may be worth reviewing your finances now.

More than the usual changes to tax rates are expected this time, after various consultations were started in the spring.  Draft legislation was published in early July which contained no major surprises, but consultations underway could result in some major announcements.  For example, the Office of Tax Simplification has been examining the options for simplifying the administration of inheritance tax (IHT), with its report due in the autumn.

One possibility is that elements of IHT business relief will be ‘simplified’ by being abolished, which could restrict, or even end, the growing use of IHT-relieved AIM-based share portfolios in estate planning.

Potential tax increases

In June, the Prime Minister announced increased NHS funding of £20.5 billion by 2023, saying this will mean  taxpayers will contribute a bit more in a fair and balanced way.  According to the Institute for Fiscal Studies, adding one penny to all the main rates of income tax, or 1% to VAT, raises around £6 billion a year, so the ’bit more’ could imply noticeable tax rises.

We will have to wait until the Budget to see how the Chancellor expects to raise the necessary revenue.  In the meantime, in early July the Treasury was reportedly investigating a 25% flat rate of relief for pension contributions, which could net an extra £4 billion for the Exchequer.

Please get in touch if you would like to discuss your options before any announcements.

  • The Financial Conduct Authority does not regulate tax advice and some types of estate planning.
  • Levels and bases of taxation and tax reliefs are subject to change and their value depends on individual circumstances.
  • Tax laws can change.
  • The content of this publication is for information purposes and should not be treated as a forecast, research or advice to buy or sell any particular investment or to adopt any investment strategy. It does not provide personal advice based on an assessment of your own circumstances. Any views expressed are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness. Any expressions of opinion are subject to change without notice.
     

Trick or treat? The Chancellor calls the 2018 Budget for late October
October 2018

The 2018 Budget has been set for Monday 29 October, setting a deadline for speculation and proposals.   Mr Hammond, however, has indicated that he won’t end the long spell of austerity measures, despite improving public finances. 

Proposals raised by think tanks and professional bodies include overhauls of income and inheritance tax, ‘pension tax relief simplification’, and scrapping entrepreneur’s relief to help fund NHS costs.

But every proposal is overshadowed by Brexit, and the uncertainty of what will happen on 29 March 2019.

What’s coming?

 Alongside measures announced in the draft Finance Bill, the following areas could see change:

The NHS – The NHS Foundations’ ten-year plan may not be published in time for the Budget, so the Chancellor could be limited to general spending priorities.  Mr Hammond said a digital services tax or ‘Google tax’ is coming – with or without European allies.   This income could be dedicated to the NHS.

Inheritance tax (IHT) – The IHT review from the Office of Tax Simplification (OTS) may be published ahead of the Budget.   It was tasked to look at making IHT less complex, focusing especially on trusts, administrative issues and business and agricultural property reliefs.   Calls for a complete overhaul in favour of a ‘lifetime receipts’, ‘property’ or ‘wealth tax’ seem unlikely from a Conservative government.

Stamp duty – After introducing new reliefs for first-time buyers, focus has shifted to ‘last time’ buyers, with calls to incentivise older homeowners to downsize. The Prime Minister has also indicated that an additional 1-3% duty could be levied on foreign property buyers to help control rising house prices and tackle homelessness.

Business – Business rates are due to increase next year, with business groups calling for action.   The Chancellor’s conference speech outlined changes to the apprenticeship levy to help build training and skills for SMEs, and appeared to boost commitment to the business sector.

The environment – We are likely to see a dedicated plastics packaging tax.  Initial reports indicated the costs would be borne by manufacturers rather than consumers.   However, we may also see an increase to the plastic bag levy from 5p to 10p and roll out to all shops, not just firms with over 250 employees.

In this most turbulent of times, facing pressure from many groups, perhaps the only clear thing is that Mr Hammond has an unusually tricky balancing act to pull off.

The content of this publication is for information purposes and should not be treated as a forecast, research or advice to buy or sell any particular investment or to adopt any investment strategy.  It does not provide personal advice based on an assessment of your own circumstances.  Any views expressed are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness. Any expressions of opinion are subject to change without notice.