Budget 2015: Overall it’s grey but with some notable shades, says KPMG

Budget 2015: Overall it’s grey...

Overall it’s grey but with some notable shades, says KPMG Head of Tax Policy in the UK Chris Morgan

Also on KPMG.com

Commenting on the raft of business announcements outlined by the Chancellor in today’s Budget, Chris Morgan, Head of Tax Policy at KPMG in the UK, said:

“Ahead of the Budget business was chiefly calling for stability and certainty and the Chancellor largely delivered on these while also listening to special cases. The oil industry, suffering from the drop in oil price, will benefit from the back dated reduction in the supplementary charge to 20% and the future reduction in petroleum revenue tax rate from 50% to 35% as well as a new simplified investment allowance to come in next month.

“SMEs will welcome the announcement that the investment allowance, temporarily set at £500,000, will not reduce to the old amount of £25,000 although the new amount has not yet been set. The Chancellor has also listened to the call for a review of business rates.

“The usual suspects of the drinks and pub industry benefited with reductions in duty on beer, cider and spirits and farmers were added to the list of beneficiaries with the announcement they will be able to average their income over five years.

“As expected there was a strong theme of preventing tax avoidance – re-announcing the Diverted Profits Tax, preventing contrived use of tax losses and abuse of entrepreneurs relief.

“The Chancellor also maintained another certainty from recent budgets – hitting the banks, this time with an increase in the levy and proposing to deny tax deductions for compensation payments for mis-selling.

“Business had been concerned that the Coalition seemed to be moving away from the original corporate road map and will be pleased that the current budget was “business as usual” with no surprises. At the same time the chancellor has listened and targeted relief where required."

-ENDS-

 

For media enquiries, please contact:

Jessica Liebmann, KPMG Corporate Communications

T: +44 (0)207 311 3245

M: +44 (0)7551 135 778

E: jessica.liebmann@kpmg.co.uk

KPMG Press Office: +44 (0)207 694 8773

 

Follow us on twitter: @kpmguk #budget15

Chancellor’s Budget 2015

 

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff.  The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG’s new-look website