Budget: Video reaction – ‘not as bad as feared’, says Ernst & Young

Martin Portnoy, tax partner at Ernst & Young in Manchester, gives his considered reaction to the Emergency Budget, following from yesterday’s initial thoughts and comments.

Mr Portnoy said that although this is an Emergency Budget, the Chancellor “did not go as far as people had feared,” particularly with regard to Capital Gains Tax, which increased to 28% for higher  rate payers.

He added that a 1% cut a year for the next four years in Corporation Tax,  to 24%, will actually give the UK the fifth lowest rate in the G20.

“It will be funded in part by capital allowances coming down,” he added, but said many had feared that this would be slashed massively, when in fact it has only come down from 20% to 18%.

“Although it is not so long ago it was at 25%. So there is still quite a big reduction over the last few years.”

For full analysis, click on the video below.

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