There will be no Spring Budget this March, but that doesn’t necessarily mean that the Chancellor, Phillip Hammond will be keeping silent.
On the 13th March, the Chancellor will present his Spring Statement to the House of Commons, not a Budget. The next actual Budget will likely be in the autumn, probably November.
The reasoning for the revised schedule is to give more time to develop legislation and to avoid the situation of changes taking effect from 6 April, but not actually reaching the statute book until three months or more later.
The issue was made worse in 2017, when the snap election meant most of the March 2017 Budget measures were put on hold. Indeed, some measures that took effect from 6 April 2017 – such as the reduction in the money purchase annual allowance for pension contributions – were in a Finance Act that only received Royal Assent on 16 November!
Despite the new schedule, there seem to be plenty of people who are expecting a Spring Budget in March – probably because 2017 was such an unusual year, with two budgets and three Finance Bills.
However, assuming there is not another surprise election, 2018 should be much quieter on the tax front.
Whilst there may be no actual Budget, there could still be changes announced on 13 March that have immediate effect. Very few Chancellors can resist the opportunity when they are in the parliamentary spotlight and Hammond’s predecessor was a classic example, as some of George Osborne’s Autumn Statements were more like Budgets than the real thing. If you are considering year-end tax planning, then it could make sense to complete any transactions before 13 March.
If you are in need of assistance in that planning, you should contact us as soon as possible.
Please Note: The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice.
