On the morning after, we look at some of the effects the Budget could have in Dorset.
HELP FOR HOSPITALITY AND RETAIL Dorset’s hospitality industry got some of the key concessions it asked for from the chancellor. The reduced five per cent VAT rate for hospitality and tourism will stay in place util September 30 and will then go up to 12.5 per cent before reaching its original 20 per cent next April. Alcohol duty will also stay as it is. For Andy Lennox, founder of the Wonky Table group that grew up to represent Dorset bars, restaurants and events companies in lockdown, that was the key concession. “We’re standing here with shattered balance sheets, heavily in debt, with little to no cash reserves,” he said.
Inheritance Tax changes: Chancellor Rishi Sunak walking ‘tax tightrope to balance Budget Katie Sewell
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Chancellor Rishi Sunak will announce his long-awaited Budget on Wednesday, March 3, which will mark one year since the Chancellor first introduced a number of generous Covid relief packages to see the UK through the pandemic. However, this year s Budget is not expected to be as generous as it was in 2020, with Britain now facing a looming fiscal blackhole due to significant lockdown borrowing. There are mounting concerns the Chancellor could take this opportunity to hike taxes in order to help recuperate some of the funds lost to the pandemic - and many are concerned the announcement tomorrow could spell major changes to Inheritance Tax.
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Camilla Bishop, Partner at law firm DMH Stallard, said: “It is highly unlikely that the Chancellor will overhaul the Inheritance Tax regime on Wednesday.
“IHT is complex and the potential ramifications mean any changes need to be carefully thought through – something the Government just has not had time to do in recent months.
“The recommendations in the All Parties Parliamentary Report of January 2020 were radical with the introduction of a ‘gift tax’ and dispensing with Capital Gains Tax uplift on death.
“Such changes would mean it is virtually impossible to pass on wealth without suffering tax.
Inheritance Tax changes: There’s usually no Inheritance Tax to pay on small gifts made out of normal income (Image: GETTY)
Rishi Sunak has paved the way for tax rises in Wednesday’s Budget, saying he wants to 'level with people' about the challenges caused by the Covid pandemic.