The Chancellor of the Exchequer, George Osborne, will be presenting the 2016 Budget on Wednesday 16 March 2016. With speculation of further spending cuts to come, the Chancellor may also seek to raise revenues with changes to the tax system. In particular, as significant changes to pensions taxation could be on the cards, the morning after the Budget we’ll be running a webinar focused specifically on pensions tax issues. In addition, we’ll also be running our usual Budget update webinar covering business, employment and personal taxes.
As has been widely reported in the press, a key area where we may see changes in the Budget is on the taxation of pensions. Various changes have been rumoured, including the abolition of the current 25% lump sum that can currently be taken from a pension pot, and the cutting the maximum annual contribution to £25,000. Another option, as suggested in last year’s consultation, could replace the current system of tax free pension savings that are taxed on withdrawal, with an ‘ISA-style’ system where pension contributions are taxed up front and then tax free on withdrawal.
Business Tax Roadmap
Businesses will also be awaiting further details on the Business Tax Roadmap that was promised last year and may be published on Budget Day. It is expected to contain an outline and timetable of changes to business taxation due to be introduced during this Parliament. This should include plans for the UK implementation of the OECD base erosion and profit shifting (BEPS) proposals and, in relation to these proposals, we may also see further details on the deductibility of corporate interest expense that was consulted on last year.
The Government is continuing to consider wider-scale change to travel and subsistence following a discussion document on reform published last year. We may also hear the Government’s response on the consultations on termination payments and ‘disguised employment’ (the IR35 rules) carried out last year.
Find out more
For further information on the updates in the 2016 Budget, and to register for our webinars on Thursday 17 March, you can visit our dedicated Budget 2016 website.