David Kilshaw, a private client services partner at multinational professional services firm EY, has suggested that Mr Hammond may make changes to CGT.
“With a new chancellor, we may see a new strategy – perhaps fewer tax breaks and reliefs, but more value being delivered from those that remain.
“Capital gains tax is also an area where the new chancellor may see an opportunity to make his mark.”
This sentiment was echoed by Paul Aitken, CEO of Borro.
“We’ve seen suggestions from the likes of EY that a new CGT rate will be placed on luxury assets, and we would be disappointed if this was announced on Wednesday.
“Many of our clients have made significant investments in collections of assets, such as fine art and classic cars, and would be severely affected.
“For this reason, we are hopeful this won’t be on the cards, and would welcome any move which lowers the financial burden of CGT on our clients.”
Borro revealed that their top clients borrow an average of £317,000 to cover tax bills.
Paul added: “We understand the government is looking to simplify taxes, and the roll out of ‘Making Tax Digital’ by 2020 will undoubtedly help.
“However, we are still seeing a number of clients approach us for help with unexpectedly large bills from HMRC.”
Yesterday, lender Assetz Capital suggested that possible changes in the budget Budget to business tax and the Innovative Finance Isa may boost the peer-to-peer finance sector.
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