Our new Chancellor is apparently only 38 – born in 1971 when Rod Stewart, T Rex and George Harrison were still topping the singles chart. Didn’t start work until the 1990’s.
Maybe that’s what our tax law needs – a (very young) new broom.
My hope is that he’ll favour simplicity, fairness and avoid endless changes. Something Gordon Brown never achieved as Chancellor.
Watch out though. Every new Chancellor changes capital gains tax substantially – it’s the easiest tax to start on so I suspect the Treasury encourages them to do that and wait and learn more before diving into major income tax and NI reforms which are more complex to model.
Will it go up to the same rate as income tax? Will the annual exemption reduce dramatically (per the Libdem manifesto?) Will it change immediately or not until 6 April 2011? How generous will the business reliefs be?
No idea! But we’ll keep planning to minimise our clients’ tax amidst all the uncertainty.