Search behaviour reveals biggest concerns ahead of Autumn Budget 2024

Prime Accountants analysed Google search trends* after noticing trends in the main concerns of our clients, as they brace themselves for the first Budget under the new Labour government. 

Paislei Godley, associate director at Prime Accountants, described the Autumn Budget as “the most feared Budget we’ve seen”. 

She said: “The fear from businesses around this Budget is unprecedented and clients are concerned about every aspect, from potential changes to employment legislation and minimum wage to Capital Gains Tax and corporation tax.”  

Potential changes to Capital Gains Tax (CGT) – tax paid on the profits of the sale of an asset that has increased in value – are one area of concern. 

Searches for ‘Capital Gains Tax’ have reached a 12-month peak, with 195,000 searches on the topic in September alone. In fact, the topic has seen an increase of 25 per cent in the last quarter. 

This follows press coverage suggesting the Treasury is considering raising CGT as high as 33 per cent to 39 per cent. 

Paislei said: “The search behaviour reflects exactly what we’re seeing from clients.  

“We are receiving many more questions around Capital Gains Tax, potential increased rates and what this means for them. 

“At Prime, we have clients who are rushing to get contracts exchanged ahead of the Budget in an attempt to secure a disposal for a lower amount before changes take effect.” 

Google searches for ‘IHT’ also reached a 12-month peak in September, reflecting growing concerns about changes to the current threshold of £325,000. 

Related search queries include ‘IHT budget’, which has seen a 300 per cent increase in searches and ‘IHT changes’, which has seen a 150 per cent increase in searches.   

Paislei said: “We are seeing clients wanting to move property into pension funds quickly to remove them from their estates for fear of Inheritance Tax changes.” 

‘Pension lump sum’ is another term that was Googled to its peak in September, with enquiries from clients also spiking the same month.  

Many of Prime’s clients expressed their plans to extract the pension lump sum ahead of the Autumn Budget for fear it will be taxed heavily. 

However, wider concerns for pensions started earlier in the year with searches for ‘pension lifetime allowance’ peaking in June. 

Despite Labour dropping plans to reintroduce a cap on how much can be saved in a pension before it is taxed, known as a Lifetime Allowance, individuals are still worried about changes that may be announced in the Budget. 

Our Prime Wealth experts can provide tailored advice for anyone concerned about the impact to their pension. 

The Prime team are seeing a broad range of concerns from business leaders on how the budget may impact bottom lines. 

Paislei said: “The fears around this Budget are reflected across the country, with the Institute of Directors reporting a drop in business confidence in September to -38 per cent – the lowest since September 2022. 

“We’re hearing from clients how the difficulties of running a business are mounting, with increased cost pressures squeezing margins, as every aspect has become more expensive and that is expected to increase. 

“The uncertainties around the Budget mean that businesses are nervous about pushing forward with investment plans, purchases or recruitment because of potential changes to tax and access to funding. 

“When weighing up the benefits of owning a business versus just being employed, there really is limited incentive. 

“In contrast, there are a handful of clients who are just going ahead as planned, as they believe they just have to get on with it and be ahead of those that are holding back.” 

Searches for ‘corporation tax’ have increased by 23 per cent in September, with 64,000 searches being made. 

Related searches for ‘marginal relief calculator’ have also seen a 110 per cent increase in searches, suggesting business owners are looking for new ways to reduce their tax bill to accommodate other changes from the Budget. 

What is marginal relief for corporation tax?

Marginal relief enables companies with smaller profits of less than £250,000 to pay a gradual increase in Corporation Tax rate between the small profits rate and the main rate, reducing their rate from the 25 per cent main rate. 

Paislei said: “One of the questions we are being asked by clients at this time is how they can potentially reduce their corporation tax bill and, for smaller firms, marginal relief may be the answer.” 

Searches for ‘business property relief’ and ‘BPR’ peaked in August, as business owners look to learn more about potential caps.  

BPR could only be applied to 50 per cent of share value until 1992 when 100 per cent BPR was introduced on qualifying assets after an ownership period of two years.  

Concerns about changes to eligibility and the amount of relief available have also led to related searches for BPR and Capital Gains Tax, AIM shares and IHT. 

What is Business Property Relief?

It enables share to be passed down without the need for Inheritance Tax (IHT). Business property relief can be used to reduce IHT paid on the value of shares in a trading business.  

Paislei said: “There are serious concerns around the implications for succession of long-standing family businesses. 

“The loss of Business Property Relief (BPR) and the Long-Term Capital Gains Tax (LTCG) uplift on shares to be gifted to family or put into trust being the biggest fears.” 

To learn more about making your business tax efficient take a look at our corporate tax planning services. 

*Data is based on Google Trends data from 1st October 2023 to 30th September 2024.