With a deluge of tax changes slated for the new tax year in April, such as the start of the serial tax avoiders’ regime and restrictions on salary sacrifice arrangements, the next Budget must be tax light, says Bill Dodwell, partner and head of tax policy at Deloitte
What would we like to see in the Spring Budget? Nothing, actually. We’ve gorged ourselves on far too much legislation over the last few years and for most taxpayers and advisers the changes need time to be learnt and acted upon. What’s arriving in April, alongside the new £11,500 personal allowance and corporation tax cut to 19%?
For individuals, we’ll see:
For some Scottish residents, the first opportunity to pay more income tax than those in other parts of the UK, as the higher rate threshold is frozen at 2016-17 levels.
For savers, the introduction of the Lifetime ISA and the big increase in the regular ISA amount to £20,000.
The introduction of limits on deducting interest expense against rentals from buy-to-let properties. In 2017-18, 25% of the interest will be deductible at basic rate only and the way this is done could tip a few into the higher rate tax band.
