The Chancellor will deliver his 2016 Budget today. Press coverage suggests that the public finances allow him limited room to manoeuvre.
We anticipate the Budget will include:
- final rules on the additional 3% stamp duty land tax on the purchase of second homes;
- a clamp down on the use of personal service companies;
- an update on the UK’s implementation of the OECD’s “Base Erosion and Profit Shifting” measures;
- final rules limiting interest deductions for companies; and
- potentially further restrictions to entrepreneurs’ relief.
There will, almost inevitably, be further measures targeting avoidance and offshore evasion.
Reductions in the headline rates of some taxes may be made to counter the negative impact of further cuts in Government spending.
We will be commenting on specific measures shortly after the Chancellor’s speech, which is scheduled to start at 12:30.