Could we see a U-turn on 'no new taxes'?
With a handbrake turn applied to plans to scrap the 45% income tax rate, the spotlight now shifts to the remaining £43 billion of tax cuts announced in the mini-Budget. It remains unclear how the chancellor proposes to fund these and provide reassurance to the markets. If the answer isn’t austerity and growth isn’t immediately forthcoming, the answer may ultimately lie in increasing taxes once again.
HMRC scrutiny of R&D tax relief claims could hamper growth plans
Investment in innovation represents a key part of the government’s plan to stimulate growth, with Research and Development (R&D) tax reliefs playing a leading role. The wider emphasis on growth however comes at a time when HMRC is seeking to review and scrutinise R&D tax relief claims more than ever before. Could HMRC’s approach represent a barrier to the government’s wider growth objectives?
What does the future hold for non-doms coming to the UK?
The UK has long been an attractive jurisdiction for wealthy, internationally mobile individuals, but with increased uncertainty and indecision around tax policy, will the attractiveness of the UK dwindle?
Why the 45% income tax cut fell flat
Whilst the U-turn on the 45% income tax cut seemed inevitable due to the political pressure, the scrapping of the measure has not been met with disappointment by many business owners impacted by it. Many would rather the government focused on other tax policies that are more likely to encourage entrepreneurial behaviour.