Responding to today’s Budget, Jim Meakin, Baker Tilly’s Head of Tax, said;
‘The Chancellor’s ‘Security First’ Budget was far more significant than expected. He has shown real creativity in navigating around the triple lock, finding a number of areas for generating additional revenues while announcing some eye-catching measures such as the new living wage, designed to generate a feel-good factor about progress in the economy.
Every corporate business is set to benefit from a continued reduction in the corporation tax rate which will reduce to 18 per cent by 2020, however, this could be offset by higher costs for employers such as meeting the living wage requirement and the apprenticeship levy.
In addition to the heavily trailed changes to the inheritance tax threshold which increases to up to £1m for a couple over their lifetime reflecting the value of a family home, the other significant announcement concerned buy to let property owners, who will be adversely affected by the abolition of relief for mortgage interest.
There will also be a wholesale review of how dividends are taxed, the outcome of which seems likely to be that most recipients will be no worse off, and may be better off. However recipients of large dividends from private businesses and holders of large investment portfolios may well lose out.’