PwC outlines Budget ‘racecard’

PricewaterhouseCoopers has outlined its odds on announcements Chancellor
Alistair Darling is likely to make in Wednesday’s Budget.

John Whiting, tax partner at PwC, said this is a very difficult Budget to
call with the only real racing certainty being that there will be ‘a strong
showing from the economy horse, in its rather dark colours.’

‘No doubt the brighter colours of tax credits will make a showing but whether
they will stay the distance of the speech is a moot point. Don’t be surprised
if, like the Grand National, we see an unfancied outsider coming through in an
effort to jump the Beecher’s Brook of fiscal imbalance as the Chancellor
approaches the finishing post of the speech,’ he said.

Whiting’s tips include confirmation that the VAT rate will return to 17.5%
from 1 January 2010 (1-3), an extension of the new three year carry-back of
£50,000 of losses beyond the scheduled expiry date of November 2009 (1 – 2), and
confirmation that the dividend exemption and interest cap will be brought in on
foreign profits.

Further Reading:


urges focus on medium-term fiscal deficit

2009 Budget wish-list

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