Much to the surprise of the pollsters, David Cameron has led the Conservative Party to a majority result in yesterday’s election.
What will this mean for the profession? More of the same?
Certainly the sections of the recent Finance Bill that were deferred due to the impending election (this includes the “Trivial Benefits” changes), will likely be included in a second Finance Bill later this month.
What other tax changes might be included?
• Will we see the promised easing of Inheritance Tax?
• Will higher rate tax relief for pension contributions be removed?
• Will the 25% tax free lump sum be up for scrutiny?
It will also be interesting to see if the present, and generous, Annual Investment Allowance limit of £500,000 is extended beyond 1 January 2016, when it is due to reduce to just £25,000.
No doubt HMRC will continue to restrict what they see as inappropriate use of the tax code in order to avoid tax. Inevitably, the recent discussions about tax advice, and when this strays into tax avoidance advice, will continue to be debated.
And then there is austerity… How fast and how deep will public expenditure be cut?
Add to this the referendum on Europe and the possible federalisation of the United Kingdom, and we look to heading towards significant changes. Perhaps, after all, it won’t be business as usual?