The Cost of COVID – the impact on your financial planning
The cost of the COVID-19 pandemic to the UK economy is going to be huge.
The government has been supporting businesses and the workforce over the last four to five months with no immediate sign of let up as job losses start to bite.
How is all this borrowing going to be repaid? And how might this impact your financial planning?
Our analysis of the Cost of COVID
Paradigm Norton have produced a whitepaper that considers the impact of COVID-19 on government spending and revenue and how the nation might balance its books. We review the options available to repay this debt and an in-depth analysis of the likely approach for HMRC to increase its tax take.
Based on our conclusions we consider the financial planning actions available ahead of the expected Budget in October, date yet to be announced.
Please find a link to our co-authored white paper which was written by both our Head of Technical Dan Atkinson and Senior Tax Manager James Mohide.
You can also view a short and related video here. The film succinctly summarises our findings.
Conclusions and next steps
We conclude that the tax at the greatest risk of increase is Capital Gains Tax (CGT). The good news is that with some smart financial planning you may be able to mitigate this risk. If you would like to speak to one of our Client Managers to explore how we might be able to help you manage this risk please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..
This article is distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author and does not represent a recommendation of any particular security, strategy, or investment product. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed. The tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The Financial Conduct Authority does not regulate tax planning.
