Tax comment following Budget

Tim Sarson, Head of Tax Policy at KPMG UK, said:

“Today saw the delivery of one of the most hotly anticipated Budgets in living memory.  After 14 years in opposition and an election manifesto which pointed to only relatively muted tax rises, it must have been a bittersweet moment for the Chancellor, as she had to navigate the tensions of delivering a pro-investment message while ‘fixing the foundations’ with tax rises.

“The positioning ahead of this budget was all about tough political choices with a claimed black hole of £22bn and public services in need of vital support.  In the final analysis tax rises totalling £40bn were announced, but there were few surprises.

“The Budget confirmed a 1.2% increase to employers national insurance alongside a reduction in the threshold at which it starts to be paid.  As heavily trailed, the Chancellor confirmed a Corporate Tax Roadmap which confirms the headline corporation tax will be capped at 25% whilst the main reliefs will be retained at their current levels.

“After months of speculation, businesses now have more clarity on what they have to face into for the next 12 months, but hopes of a quiet Budget with no tax surprises were tempered by today’s increase to employer’s national insurance and to the National Minimum Wage.

“From a personal tax perspective, the key announcement turned out to be changes to Inheritance Tax reliefs for agricultural and business property with the Government maintaining 100% relief for the first £1m of assets and 50% relief thereafter.  

“The Budget was not as shocking for businesses as some had predicted this Halloween. It instead left businesses with some grounds for optimism alongside, potentially, a few bumps in the night as they look ahead.”

-ENDS-

For further information please contact:

KPMG Media Relations
Gerard Swinley
gerard.swinley@kpmg.co.uk
M: +44 7510 375540

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.

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