Tony Steinthal, tax partner at Chantrey Vellacott, commenting on the Chancellor’s 2015 Budget, said:
“With the next general election so close, it was inevitable that this Budget would attract a great deal of excited anticipation. In the end, there is a significant amount of detail for the politicians to argue over in the coming few weeks but little in the way of substantive change for the tax specialist.
“In economic terms, a central concern for all of the developed economies over the last five years has been the growing size of their debts. There has been a great deal of very public argument over whether the best way of addressing the issue is increasing or cutting public spending.
“The Chancellor has clearly chosen the cutting route and has chosen to continue it, albeit the cuts are likely to be considerably less painful than previously feared.
“Against this background, and plans to raise nearly £20 billion from asset sales,– the Chancellor intends to apply most spare funds towards reducing further the outstanding net debt. This will be a popular move in the City and will no doubt contribute towards minimising the UK’s borrowing costs by helping improve its credit rating.
Business tax
“In business tax, perhaps the most interesting development is the announcement of a thorough review into the system of business rates. This has the potential to yield a great benefit to physical shops in the high street.
“The Government is also pressing ahead with the Diverted Profits Tax – often referred to as the ‘Google Tax’ – to counter perceived tax evasion by multinational businesses.
Individuals
“On personal taxation, the increased freedom to deal with pensions will be welcomed by many. There is also a continued effort to discourage egregious tax avoidance.
“Unexpectedly perhaps, it seems likely that the Finance Bill to be published in five days’ time will be substantial. Parliament has just three days to debate and pass it into law before its dissolution. It remains to be seen whether all that has been announced for inclusion in the Bill will actually make it onto the statute book by the end of the month.”
