FSL Chain Mail (8th March 2021)

FSL’s Chain Mail is a regular blog containing links to news articles that we think are worth sharing.

Last week the Chancellor announced the Government’s taxation and spending plans, in his much-anticipated Budget speech.  The Chancellor confirmed a number of new policies including a small profits tax rate, corporation tax hikes for larger organizations, and a freeze to the thresholds for inheritance and income tax.  This edition of Chain Mail shares the latest opinions of the announcements.

Writing for the Financial Times, Claer Barrett described the measures as a “Bounce-back Budget” designed to get the UK economy moving as lockdown lifts.  Suggesting that more announcements are due and are likely to affect high earners with future tax rises.

Chris Denning, Head of Corporate and International Tax at MHA, shared his views through an article, on their knowledge hub.  He believes the hike in corporation tax will send an odious message to foreign investors, who are already nervous about the post-Brexit environment.  Furthermore, Nigel Green, Chief Executive of deVere Group, speaking to the Financial Times believes the rise in corporation tax will not go “unnoticed” by those looking to invest in the UK.  However, industry leaders, speaking to Business Live, welcomed the proposal laid out by the Chancellor, describing the measures as “pragmatic” and providing “certainty” on the long road towards economic recovery.

This article in Fintech Futures examines the impact of the budget on the UK Fintech industry.  The changes include the launch of the new Infrastructure Bank, that will focus on supporting regional economic growth and tackling climate change, the Recovery Loan Scheme and the Future Fund.

Lastly, this piece from Financial Times Advisor, suggests that the 23rd March, the date when the government will release its policy consultations regarding taxation, “Tax Day” could be of equal importance to the Budget.  He believes the consultations will provide us with a clearer picture of the longer-term future of taxation, such as changes to policies involving capital gains or the largely anticipated changes to pension tax relief.  Furthermore, Hugo Gye writing for I News thinks proposals currently being drawn up include a new tax on online retailers and an increase in national insurance contributions paid by the self-employed.

Look out for our next edition with more FSL Chain Mail links.