The debates and arguments over the merits or otherwise of some of the tax changes from the Budget have barely settled down, even two months after it happened.

The rise in employers’ National Insurance (NI) and the alterations to the Inheritance Tax rules for agricultural properties have been particularly contentious. Many businesses and individuals have raised concerns about the long-term financial impact of these changes, especially in an economic climate that remains unpredictable.

Now, with the Spring Statement delivered, it appears that further tax changes could be on the horizon. While traditionally a smaller fiscal event compared to the Budget, the Spring Statement has increasingly become an opportunity for the government to introduce additional measures or adjustments to tax policy.

Key Takeaways from the Spring Statement

1. National Insurance Adjustments – The rise in employer NI contributions remains a key topic of discussion. Business groups have been calling for relief measures to help mitigate the impact on employment costs, but will the government respond with targeted support?
2. Inheritance Tax and Agricultural Property Relief – The changes to agricultural properties within the Inheritance Tax framework have caused concern among farmers and landowners. The government has hinted at possible clarifications, but whether these will provide sufficient reassurance remains to be seen.
3. Corporation Tax and Business Investment Incentives – With businesses still recovering from the pandemic and navigating rising costs, any tweaks to Corporation Tax or new incentives for investment would be closely scrutinised.
4. Cost of Living Measures – With inflation still a concern, tax policies that impact households, such as income tax thresholds or VAT reductions, could be on the table to alleviate financial strain.

What’s Next?

While the Spring Statement may not have delivered major tax reforms, it has set the stage for further fiscal announcements later in the year. The government is likely to continue refining tax policy based on economic conditions and political pressure. Businesses and individuals should stay informed and prepared for potential adjustments.

We’re Committed to Helping our Clients

At Chapmans, we are committed to helping our clients navigate these changes. If you have any concerns about how these tax developments might affect you or your business, get in touch with our expert team today on 01775 529345 or drop us an email at office@cbsltd.org.