If Brexit is concluded at the end of this month and if the present government continues in office or wins the next election, will recent promises to reduce the tax footprint become a reality; will the UK be promoted as the low-tax place to be?
What are these promises?
Will we see Crporation Tax reduced below the promised 17% rate? Practitioners will no doubt remember Gordan Brown’s 10% small company rate and the rush to incorporate that followed his announcement.
It is difficult to see how this particular strategy would boost the economy unless small and medium sized businesses used the cash saved to invest. If past experience is anything to go by, when times are uncertain businesses will tend to hang on to cash to bolster reserves rather than speculate based on uncertain outcomes.
Any changes to Income Tax will no doubt benefit higher income earners. Will we see the basic rate Income Tax band extended to £80,000?
There have also been repeated references to the inefficiencies of Inheritance Tax; will this be neutered or abolished?
Also, how will government justify any potential loss of revenues, will this be met by borrowings? What then of the rumours of a magic money tree?
Hopefully, the present push to agree a withdrawal agreement with the EU will be fruitful and followed by a parliamentary rubber stamp.
Truthfully, speculation on these matters is perhaps a little premature. Perhaps the best we can hope for is an end to the appalling uncertainty we have had to ride out over the last three years.