Critical decisions need to be taken on tax policy by the new coalition government – and there’s no time to waste, warn accountancy professionals. BKL tax partner David Whiscombe is quoted in an article on Accounting Web.
“It seems to be more or less established that the rate of CGT will increase substantially, perhaps to be at the same rate as income tax, which will require a fundamental re-think of much tax planning that has been undertaken in recent years,” predicted David Whiscombe, a partner at BKL Tax in London and member of the UK200 Group’s tax panel.
“It is now clear that the Lib Dems’ ‘mansion tax’ plan will be dropped, which is obviously a good thing and I assume the hare-brained idea to levy VAT on new homes will also go. The dropping of the 1% national insurance rise is also good news for SMEs, while it seems the commitment to a £1million inheritance tax nil rate band will not come in during this parliament,” said Whiscombe.