Simpkins Edwards holds Budget review events for Barnstaple, West Devon and Exeter businesses

Exeter-based chartered accountancy firm Simpkins Edwards will be holding post-budget events to help owners of SME businesses understand the broader implications of the Budget due to be delivered by Rashi Sunak on 11 March, following Savid Javid’s recent exit from the post.

The free, pre-booked seminars will take place at noon on 13 March at the Simpkins Edwards office in Barnstaple and at Strawberry Fields in Lifton. A further event will take place at Simpkins Edwards’ Exeter office at midday on 17 March. In addition to providing an insight into the Chancellor’s Budget, guests can look forward to a light buffet.

Mark Simic, Partner and tax specialist at Simpkins Edwards, commented: “There has been a great deal of speculation about the Budget, and since the recent departure of Sajiv Javid, it’s hard to be sure that changes previously talked about will now be implemented.

“Our view is that this is unlikely to be a giveaway Budget, given that it’s so early on in the majority Government’s tenure. Moreover, as the Prime Minister has plans for major infrastructure investment and has committed £1bn of funding to help councils get a grip on the social care crisis, we can expect an increase in both Government borrowing and taxes.

“Based on much trailed talk within the exchequer, we anticipate that there could be a change to entrepreneurs relief, which currently gives business owners selling all or part of their business, relief at 10% on all gains made on qualifying assets. Business owners will need to understand the full implications of these changes if they have plans to dispose of any or all of their business.

“We’re also expecting inheritance tax reforms as there has been cross-party consensus for a move to allow more lifetime gifts. In a change to the the current system, where gifts are taxable at up to 40% if you give away more than £325,000 in the seven years before your death - subject to taper relief - the new proposals would introduce an annual tax-free  allowance of £30,000 for lifetime gifts, above which individuals would be taxed at 10 per cent.

“In fact, the All-Party Parliamentary Group on Inheritance and Intergenerational Fairness has gone so far as to say that all reliefs – which favour the very rich – should be scrapped and that wealth transfers made in life or in death should be taxed at a flat rate of 10 per cent, rising to 20 per cent on death for estates worth more than £2m.

“If this were to happen, the treasury would hope to bring in more revenue overall and the face of IHT would change significantly, requiring careful tax planning. 

“One other area that could be affected is a cut in pension relief for those earning more than £50,000 a year. A fall in relief from 40% to 20% would earn the Exchequer an estimated £10bn a year, but only time will tell on that count.

“It’s certainly set to be a fascinating Budget, and we’ll be working hard on the finer detail so that we’re ready to keep businesses in the South West up to speed on any changes that might affect them, for good or bad.” 

To book your place on the free Simpkins Edwards post-Budget seminars, email sroberts@simpkinsedwards.co.uk or visit here or https://bit.ly/3bEFAGZ