Budget 'unlikely' to deliver tax concessions to rural sector

The Government's Autumn Budget is unlikely to deliver tax concessions to the rural sector given the looming EU exit cost, according to financial experts.

Chartered accounts, Saffery Champness, has given their expert opinion on what the Budget will have in store for the rural sector.

The Budget, to be announced on Monday 29 October, will be light on giveaways and heavy on any measures that can scrape more into the Treasury coffers, particularly with the cost of Brexit and possibly with an additional year of payments to the EU looming, which is already estimated at costing every UK household some £870 per annum.

There may be a few measures that will directly affect the rural economy, and others where the rural economy, whilst not directly in the firing line, will feel the impact. A number of proposals have been given airtime.

A fuel duty freeze for the ninth year in succession would be broadly welcomed.

An increase in Stamp Duty Land Tax (SDLT) for overseas buyers might have some consequences for the landed estates and country homes market, although, at the top end, such additional penalties should be no disincentive for those with significant, available funds to buy.

The prospect of a capital gains tax (CGT) dispensation, either a reduction or total get out, for landlords selling to long-term tenants may prompt some release of property.

It is suspected that for rural landlords, unless they are looking to cash in for other reasons, would rather keep their portfolio intact until the uncertainty surrounding Brexit and its impact on the property market has become better understood.

A number of options are available to the Chancellor needing to scoop more into the tax coffers and one cannot overlook some that have been circulating to date: a penny on income tax, an increase in Capital Gains Tax rates and charging National Insurance on the earnings of those who continue to work after retirement age would all be radical.

Richard Cartwright, Partner, Saffery Champness commented: "What we badly need in these uncertain times are measures that encourage business development, promote business growth, and ease business succession from one generation to the next, although one has to consider any giveaways on these fronts are unlikely in such uncertain times – and even though an end to austerity is now being claimed."