The Chancellor, Rachel Reeves, has confirmed to the House of Commons that the Office for Budget Responsibility (OBR) has been commissioned for an Economic and Fiscal Forecast which will be published on 26 March 2025. This will not be another Budget.
The OBR must produce two forecasts each financial year.
The Treasury's notice confirms that Chancellor "remains committed to one major fiscal event a year". While this aims "to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support the government’s growth mission.", it does not sit quite so well for software developers.
For example, the changes made to the rate of Capital Gains Tax (CGT) at Autumn Budget 2024 affect both 2024/25 and 2025/26 SA tax returns. The industry timetable for software development in terms of self Assesment is generally 3 to 6 months this means that that many developers appreciate a Spring Budget which then makes changes for a tax year which is 12+ months ahead, rather than an Autumn Budget that tends to allow only 4 months at a maximum.
In the case of the recent CGT changes, taxpayers who made gains before and after 30 October 2024 may have some difficulty in their calculations due to the increase in the tax rate mid-year. As things stand, they will need to make adjustments on their 2024/25 returns to reflect the changes. No doubt there will be more guidance on this aspect once the current tax year ends and the new return forms are created.
Useful guides on this topic
Autumn Budget 2024: At a glance
Key announcements included raising the rates for the National Living Wage (NLW), Employer's NICs, Capital Gains Tax (CGT) and Stamp Duty Land Tax (SDLT) as well as making Inheritance Tax (IHT) reforms for business property.
Self Assessment Return 2023/24: What's new?
2024 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2024.
Notice to file a tax return: section 8(1) TMA 1970
Received one of these? You need to file a return . A guide to explain the implications of a notice sent to an individual under s.8(1) TMA 1970 to file a tax return.
Directors: Do I need to file a tax return
Do I need to file a Self Assessment tax return? What if I am a director? Can HMRC make directors file tax returns? When should I file a Self Assessment return?
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