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Labour Has Won - So what is next for your Business and Taxes?



Congratulations to Labour and Keir Starmer after winning the General Election by an overwhelming majority. Charterwells have looked at the ways in which this change can impact taxes and our client's businesses below.


Over the coming months they will confirm the announcements, but for now, here are the key measures we can expect.


Help for Small Businesses

Labour have stated they will setup a £250 billion UK National Investment Bank to help small business access the funding they need.


Making Tax Digital

They will scrap the quarterly reporting requirements for businesses with a turnover of under £90,000. This will relieve the admin burden for small businesses.


Income Tax & National Insurance

Labour have pledged not to increase either of these. This will be a relief to many business owners and thier staff accross the country.


Corporation Tax

Labour have signalled their commitment to ensure that corporation tax does not rise beyond 25%.


VAT on Private Education

The 20% VAT to be introduced to private school fees will be a blow to the many parents who can not afford a penny more. Business rates relief for private schoods will also end.


This policy will be looked at in careful detail as there is a high chance of it backfireing and creating a larger burden on state sector which will mean the children are the real losers.


Capital Gains Tax

This may well be an area that is targeted to raise tax receipts. They may look at increasing the CGT on company disposals together with disposals of non main-residence properties.


Inheritance Tax

With the largest wealth transfer about to take place over the comming decade, Labour will look to take a piece of this pie.


Broadband

They have pledged to roll out free full fibre broadband to every household and business by 2030.


Bank and Post Office

Labour will use their power to stop further closure of the beloved high street banks and Post Offices.


Next

Charterwells together with other business leaders and communities urge the government to put SME's at the forefront of their policies to grow our economy.


This may be a great time for you to arrange a meeting with Charterwells to ensure your business and wealth grows despite what may happen to the economy.

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