Non-doms and nil rate bands: Six ‘Emergency Budget’ predictions
By International Adviser, 19 Jun 15
Chris Groves and Sophie Dworetzsky from international law firm Withers outline six of their expectations for July’s Budget.
Now that the Conservative’s hold a majority leadership over the United Kingdom chancellor George Osborne has announced an “Emergency Budget” on 8 July, but where will his new-found autonomy take him?
Under the coalition government, Osborne made fiscal decisions alongside prime minister David Cameron, chief secretary to the Treasury Danny Alexander and deputy prime minister Nick Clegg.
As this “Quad” merged Tory and Liberal Democrat sensibilities, policy formation often became an arduous, thankless task.
Perhaps as a result, this April’s budget was particularly tame, especially when compared to the pension reforms announced in 2014.
So will next month’s Budget be a chance for Osborne to stretch out and implement everything he previously could not?
Also, is the “emergency” in “Emergency Budget” being used across the media merely as a headline grabbing mechanism, or is it a euphemism for wider, deep-set fears that a hard Tory agenda could now reign free?
Expectations
Semantics aside, the Tories made several fiscal promises throughout the election campain for which they are likely to be held accountable for next month.
Among other points, the party pledged to raise the personal allowance up to £12,500, raise the 40p income tax threshold to £50,000, and abolish inheritance tax on estates worth £1m.
Most importantly, Osborne remained stoic around the issue of non-domiciliary status in the face of Labour leader Ed Milliband’s promise to remove the status completely.
However, while the Tories are unlikely to remove non-dom status entirely, it seems likely that its privileges will become more costly, with Osborne pledging to increase the maximum remittance basis charge beyond its current maximum of £90,000.
Whatever Osborne comes out with next month it is safe to say that the pressure will be on, as the electorate who voted for his party wait to see him deliver.
Here, Chris Groves and Sophie Dworetzsky from international law firm Withers outline six of their expectations for July’s Budget.
Tags: Non Doms | UK Adviser | Withers
