Angela Keery, Tax Director, HNH Partners, has been featured in The Irish News sharing her insights on the UK Government’s Spring Statement
Chancellor Rachel Reeves’ Spring Statement was notably more subdued than fiscal events of recent years with the absence of leaks and pre-briefing signalling there would be no dramatic interventions – and so it proved to be.
However, for many business owners, the economic backdrop remains anything but calm. Inflation has eased but is likely to be impacted by rising energy costs while recent data shows that planned redundancies have surged and confidence is fragile – and we don’t yet know how the full ramifications of the conflict in the Middle East will play out locally.
Across Northern Ireland, firms of all sizes are feeling the squeeze of higher operating costs, continued uncertainty, and more complexity, such as Making Tax digital for Income Tax coming into effect next month, adding compliance obligations and costs for sole traders.
While the Statement itself may not have delivered any surprises, there is significant change already locked in.
Two of the biggest upcoming tax changes relate to Inheritance Tax, where from 6 April, 100 per cent Business Relief and Agricultural Property Relief will be capped at £2.5 million. A year later, from April 2027, unused pension funds will also fall within the scope of Inheritance Tax, ending their long-standing exemption. Inheritance Tax planning has never been more relevant.
In addition, the rate of capital gains tax on business assets will rise from 14 per cent to 18 per cent, resulting in in a material change to the potential tax exposure for many individuals, particularly those that have worked hard to build strong trading businesses. Any planning they previously implemented needs to be revisited in light of these changes.
Business owners in particular need to plan ahead, whether that is considering succession, retirement, or a potential sale. Early preparation is critical to maximise value of the business and provide structures to achieve their desired outcome.
Whilst we don’t know what the next Budget will bring, a period of relative policy calm often provides the best opportunity to act decisively. Waiting until deadlines loom or market conditions tighten further can limit options and erode value.
The Spring Statement may have been understated, but higher business taxes are likely to remain for the foreseeable future. For Northern Ireland’s owner-managed businesses, strategic advice and early action will be key to protecting wealth, securing succession and maximising opportunity in the years ahead.
Read the full article here: https://www.irishnews.com/news/business/a-non-fiscal-event-overshadowed-by-developments-in-the-middle-east-HRGXAI7IANF6RG6WR6XMAWMDLI/.