As we look forward to Spring, the big question is whether we are going to see a tax hike to pay for historically high levels of debt. Rising unemployment, business closures, and intergenerational inequality have led to many such calls.
- What will the March Budget focus on?
- Which taxes are likely to rise and will a ‘wealth tax’ be introduced?
- What are the implications of Brexit for the high-net-worth community?
- How can entrepreneurs enhance their reputation by investing?
In this edition of the political briefing, we look at possible routes the Government may take in the Spring Budget, the implications of Brexit for the UHNWI community, as well as the latest British political polling figures and global political trends.
Summary of findings
- The March Budget will be dominated by COVID-19, likely focussed on short-term measures once again, rather than committing to any new big-ticket spending pledges.
- Tax increases are likely and Capital Gains Tax could potentially rise as high as 28 percent, but we do not expect any significant changes to Income Tax, National Insurance or VAT.
- Entrepreneurs who play their part in the UK’s economic recovery by investing capital and creating jobs could experience a reputational boost over the coming 12 months.
- The Chancellor has ruled out a Wealth Tax as he believes it would go against his party’s values, despite it garnering media attention.
- Brexit fallout will cause short-term economic turbulence and some analysts are expecting a drop in asset values, with the Government likely to push investment in the North of England.
- The Conservatives now have a four point lead over Labour in the latest polls, likely in part due to the vaccine rollout, which could influence the next Budget.
Plus, more insight into the current political landscape and practical, hands-on suggestions on how to manage your risk and respond to potential issues. Download the full report below.
Download the full report