It's Budget Day on Wednesday but what will it have in store?
There is much talk of planned reform of Entrepreneur's Relief, with its availability possibly being abolished or significantly reduced. This will have an impact on the Capital Gains Tax liability of people selling their businesses or shares in their limited companies.
We expect the Chancellor to confirm that the personal allowance will remain at £12,500 for a second year, but the threshold for paying National Insurance will rise to £9,500 per year. This puts it out of line with Employers National Insurance, where the threshold will only rise slightly to £8,788.
The NI threshold increase offers tax planning opportunities particularly for company directors drawing salaries from their companies.
If you would like to talk through possible options, then please contact us on (01670) 772572.