Navigating tax policies amid political change – Wealth Briefing

Key concerns

Katharine focuses on some key areas affected by the change in government, including:

• Election promises and tax system: The election campaign featured significant tax changes yet detailed policy frameworks were often lacking. Early policy changes might be expected, but minor adjustments like increasing ‘stealth taxes’ could worsen the existing problem rather than simplifying it.
• Short-term vs long-term solutions: Short-term policies can address immediate economic issues but shouldn’t overshadow the need for long-term tax system reform. Simplification should be a guiding principle, with a focus on reducing administrative burdens.
• Impact on individuals and advisors: The uncertainty of new policies has led some individuals to seek stability by moving out of the UK or reconsidering major financial decisions. Advisors must provide transparent advice, helping clients make informed decisions despite the uncertainty.

Katharine comments that the new Labour Government must focus on creating clear, well-communicated policies that not only address immediate issues but also consider the long-term resilience and simplicity of the tax system. By doing so, it can build a foundation that supports effective tax planning and administration, benefiting all users of the tax system across political divides.

For more detailed insights from Katharine, you can read the full article on WealthBriefing here.

For further advice

As we wait for the new Chancellor’s Budget sometime in autumn 2024, for further advice or guidance on the proposed tax changes and how they may affect, please get in touch with Katharine Arthur directly.