Weekly tax brief | 13 August 2019

Will tax increases pay for Boris’ spending spree?
George Bull
With the Prime Minister under attack for alleged blatant electioneering, we take a look at the total cost of the new policy measures which he has announced. These could be paid for through borrowing or tax increases. What might the tax increases look like?

Tax extremes: numbers paying no tax or top-rate tax both increase
Susan Ball
The UK tax system is delicately balanced, with more people than ever before either paying no tax or paying income tax at top rates. The Chancellor of the Exchequer may be tempted to introduce additional top rates of income tax in his budget. However, care will be required to avoid driving more high-earners out of the country.

Document your gifting strategy while you can
Rachel De Souza
A recent judgement by The Court of Protection provides a timely reminder for everyone to take care of their lifetime giving and to document how they want their wealth to be disbursed.  

An end to the favourable tax treatment of partnerships?
George Bull
A recent report suggests that almost one in three of the top 1 per cent of UK income taxpayers are business owners, even though they account for only one in five of the workforce overall. Partnership profit shares and dividends suffer national insurance contributions at lower rates than salaries, although partners pay income tax on more than they earn. The report suggests that partners in firms should pay more NIC: we think that would be a mistake and ignores other issues.