It’s Budget day and DevDosh Ltd can’t wait to see what our four week old chancellor if the exchequer Rishi Sunak will have to say. Nobody can say his job has been easy and, it’s getting more complicated by the day. The current international medical situation and it’s inevitable consequences are bound to impact at least part of his fresh budget.
He is launching his first budget into an unsure landscape. Financial markets are crashing and nobody knows to what extent COVID-19 will continue to damage international finance. So the suspicion is that Rishi will keep things simple.
We suspect he will use this budget to reinforce the Conservative party manifesto. The Conservatives want to end austerity once and for all, and invest in a post Brexit Britain. We should be seeing commitments to much higher public spending; and not just on day to day items but to large capital projects too. This will of course require a greater degree of borrowing to support. That may have conceal the hidden benefit of making the bond market a slightly less dreary environment – who knows.
Main rates of income tax, value added tax and national insurance should be frozen which will be a relief to the everyday man (or woman). Less good news for the business community however as the corporation tax cut is now off the cards and the entrepreneur capital gains tax relief is due to be scaled back or indeed cancelled altogether. Big business isn’t missing out on the tax attack either. The new digital service tax has the likes of Google and Facebook firmly in their sites.
Had the chancellor consulted DevDosh Ltd on his first budget we would have requested that he put the dividend tax free allowance back up. We love that our clients get £2000 of dividend (interest) payments tax free, and that after that there is a generous discount scheme; but of course we would rather it was a larger allowance so that our investors could benefit even more.
If you are a fixed income investor and would like to find out about the benefits of tax efficient returns, contact us today, and see how we can help.