Clive Owen LLP

Lee Watson, tax partner at Clive Owen LLP said:

“From an income tax perspective, we are not anticipating movement in terms of rates and allowances. However, the Chancellor needs to incentivise those retiring early to remain or return to the workplace. Could he achieve this by giving a further allowance to individuals to use against their pension income, if they also have income from employment?

“In addition, there are suggestions that the amounts that can be saved into pension and receive tax relief, could be increased.

“The Chancellor is under pressure to reduce the corporate tax rate from 25%. I cannot see a total reversal back to 19% but could we see an uplift in the thresholds at which the 25% rate starts to help companies with smaller profits. If he did that, it could mean that those smaller companies would only attain 19% relief on capital expenditure, so could the super deduction be retained in some capacity?

“Overall, we are not expecting a significant give away but with an election in 2024, the Chancellor needs to set a tone of positivity to the electorate.”