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Top Accountants Call for Red Tape and Inheritance Tax Cuts In Pre-Budget Poll
Added: (Wed Mar 15 2006)
STRICTLY EMBARGOED UNTIL 00.01, THURSDAY 16 MARCH 2006
Top Accountants Call for Red Tape and Inheritance Tax Cuts
In Pre-Budget Poll
Thursday 16 March 2006 Reducing the red tape burden should be top of Gordon Brown's agenda in next week's Budget, according to a LexisNexis survey of the UK's top accountants. LexisNexis, the leading information provider to the accounting and legal professions, spoke to senior experts from the country's top 30 accountancy firms and found that 87% believe cutting red tape should be the Chancellor's priority, whilst 60% felt inheritance tax should be slashed.
Cutting corporation tax was third highest on respondents’ wish lists, with 53% saying they would like to see the tax reduced. The Chancellor has increased taxes on business by £8 billion since 1997, according to one recent survey.
Overall, however, experts believe both the average person and the average business will be left worse off following the Budget.
LexisNexis asked tax experts from the UK's Top 30 accountancy firms for their wish-lists and predictions ahead of the Chancellor's Budget next Wednesday.
Respondents’ top predictions for tax increases were:
· 73% believe that tax on cigarettes will rise
· 40% believe that national insurance will increase
· 40% expect to see increases in both petrol and alcohol duty
Other key findings:
60% believe the average person will be left worse off after the Budget
53% believe the average business will be worse off
60% would like to see a reduction in inheritance tax in this Budget
87% of respondents expect this year's Budget to be an 'economic manifesto for Gordon Brown's leadership candidacy,' rather than a Budget to boost the UK public or businesses
100% of those polled expect current levels of VAT and income tax to be maintained
Josh Bottomley, Managing Director of LexisNexis Butterworths, commented: “Next week’s Budget has to be about boosting British business. According to the experts, red tape urgently needs cutting and they feel more strongly about red tape than about reducing taxes.”
Jon Golding, author of LexisNexis Tolley’s Inheritance Tax said, “This survey indicates that most accountants would like to see a reduction in inheritance tax, something I would call an Ostrich Tax; most people have their heads in the sand and do not know what the nil rate threshold is or how much their home and personal chattels are worth, much of which may be taxed at 40%. There are some very simple and effective ways of reducing this tax burden, if only people were aware they have a problem.
“My expectation is that the Chancellor will do something dramatic in the Budget such as withdraw the option to rewrite a deceased’s will. Such a measure may have the effect of spurring people to lift their heads out of the sand and start looking to reduce or eliminate this tax.”
Gina Antczak, co-author of LexisNexis Tolley’s Corporation Tax said: “The reality about Corporation Tax is that although the headline rates have come down since Gordon Brown took office, businesses have been hit by an abundance of other taxes which are just too complicated to filter down to the broadsheet media or TV. The reality is that big businesses are paying far more tax than when Brown took office, one of the most important changes being the abolition of the NIC ceiling which means higher contributions.
“It’s no wonder that some companies seek ways to reduce their tax burden. If Brown were to reduce the tax burden on business, tax avoidance would be less of an issue.”
The full results of the poll will be printed in the pre-Budget edition of Taxation magazine, out today.
ENDS
For a full set of the results, or for additional information and interviews with Josh Bottomley, or other members of the LexisNexis Tax technical team please call the LexisNexis media hotline on 020 7618 9190 or email lexisnexis@luther.co.uk
Notes to editors
About the poll
LexisNexis invited the Top 30 accountancy firms in the UK to contribute to the poll.
About LexisNexis
LexisNexis Butterworths (www.lexisnexis.co.uk
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