Budgets and election

Gordon Brown has predicted that there will be a Labour Budget this spring. There is no commitment on the timing of the budget or general election.

A reasonable forecast is that the general election will be on 6 May, coinciding with the English local elections.

The Conservatives have pledged that if they win the election, there will be another Budget within 50 days. Assuming the above dates the conservative budget would be before July.

For anyone considering a review of Financial Plans especially offshore plans such as Qualifying Recognised Overseas Pension Schemes (QROPS) it is probably fair to say that the budget(s) will not provide any tax giveaways.

For those it concerns, the special benefits of QROPS are something to consider immediately bearing in mind it can take many weeks to complete any sort of Pension changes.

• Many of the provisions that will affect individuals will not be party political and so are unlikely to be reversed, whoever is the next Chancellor.
• Even a lot of the controversial changes – such as the 50% income tax rate or a possible increase in CGT – may well stick under a new government.
•  It is by no means certain that the Conservatives will gain a working majority; the electoral system is weighted against them.

Legitimate schemes such as QROPS that appear to offer significant tax breaks will always be on the radar especially in current times when tax revenues are of paramount importance.

If not already done so, perhaps now is the time to act rather than looking back at what could have been done!