Aberdein Considine partners react to today's UK Budget | Glasgow Chamber of Commerce
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Aberdein Considine partners react to today's UK Budget

Robert Holland, Head of Employment, Aberdein Considine, said: “On the face of it, the Budget delivered this afternoon seems geared towards the workers rather than employers. Small to medium enterprises in particular will feel the impact most acutely, with employer National Insurance contributions set to rise to 15%, and the National Insurance threshold being lowered to £5,000.

“As a result, many employers will seek to recoup this loss, which could result in pay freezes or even reductions for employees, with salary sacrifice schemes likely to come under scrutiny. So, ironically, the very workers the Labour Government was aiming to protect could end up shouldering much of the financial strain.”

James MacKinnon, Private Client Partner, Aberdein Considine, said: “Inherited pension pots being brought into the scope of inheritance tax will have a large impact on estate planning, especially for those with larger estates and pension pots.

“With our clients, we’ll need to make sure that any planning that has been put in place is still appropriate after the announcements in today’s Budget, especially once we see the full detail. For example, clients with business and agricultural assets may need to review their estate planning in light of the reduction in Business Relief and Agricultural Property Relief announced by the Chancellor.

“Estate planning is complex for any family, but blended families – on the rise in the UK due to increasing divorce rates – face additional considerations. That normally requires more complex planning involving trusts which can still be tax efficient and desirable.

“Given today’s announcement, it’s essential for clients to seek professional advice to protect the interests of their loved ones."

Ritchie Whyte, Partner and Head of Corporate and Business Advisory, Aberdein Considine, said:

“Today’s Budget was packed with measures which directly impact businesses, business owners and investors across the country.

As always advisers are waiting for the full details to emerge but initial feedback from clients on Capital Gains Tax is that the increases are not as steep as initially feared and concerns that Business Asset Disposal Relief would be scrapped were ultimately unfounded with instead a phased increase in the rate to 18% by 2026 being announced.  As a result, we expect to see a further push on M&A transactions where BADR is available between now and April with clients trying to lock in the existing 10% rate before it disappears.

Also of interest are the potentially significant IHT changes in respect of pensions and Business Property Relief which will necessitate many clients refreshing their estate and IHT planning advice.

Separately, there is much food for thought for employers with the combined effect of the increase in employers NI and the National Minimum Wage adding to operating costs.

From a North East perspective, the rise in the Energy Profits Levy (EPL) from 35% to 38% and the removal of the existing investment allowances has, as expected, not been well received by clients with genuine apprehension about the impact on investment and the consequential impact on the supply chain.”

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