The Chancellor has cancelled the Budget to make way for a general election. What does this mean?
What’s the impact?
Delaying the Budget gives the public less time to scrutinise and react to any changes to the UK tax system. The Scottish government will also face significant challenges, as their own Budget is based on the announcements made at the UK Budget. Finance Bill 2019-20 is subject to confirmation at the Budget, any delay presents a risk to taxpayers who would like to take action before the legislation comes into force. For example, changes to private residence relief and lettings relief from April 2020 are not final. The general view is that the proposed changes will take effect, but nothing is guaranteed whilst the legislation is in draft.
What happens next?
A new date for the Budget has not been set, but realistically it is unlikely to happen until mid-December based on the government’s current plans. Several long-term commitments, such as Making Tax Digital have already been delayed due to Brexit, so other planned tax reforms may not be prioritised or could be scrapped altogether.