Following the UK Autumn Budget announcement on Monday, please find a Budget Summary here highlighting the key issues likely to affect you and your business.
Fraser Campbell, Head of Family Business, was a guest panellist at the recent Herald Budget Briefing Breakfast discussing the impact of the Budget for businesses in Scotland.
Some key themes are highlighted below:
- The widening tax gap between Scotland and England means Scottish businesses will need to think how to bridge this gap to attract talent.
- The budget has been described as an artificial budget ahead of Brexit and advice to businesses is to prepare and plan for Brexit now. Fraser commented that businesses with a complex supply chain should carry out analysis now with a warning that a lack of preparation will slow the economy down.
- Tax Partner, Craig Coyle noted the changes to Entrepreneurs’ Relief that shares will now need to be held for two years rather than one for disposals on or after 6 April 2019. He advised those thinking of a sale to organise their structure earlier as a result. Also, with some changes to what types of shares qualify, anyone whose shares have non-standard rights should seek advice.
- For the brewing & distilling sector, the panel agreed that the government were doing the right thing to freeze tax on spirits, beer and cider to help the Scottish economy grow.
- Fraser also highlighted that the impact of reforms to individuals working under IR35 is hugely significant and a hidden tax rise.
The Scottish Budget will be presented by Derek Mackay MSP, Finance Secretary on 12 December 2018 with Scottish tax rates for the year ahead announced then.
If you would like to discuss any Budget implications for you and your business, please contact your usual Campbell Dallas advisor or any of our service or sector line specialists listed on our website.