Tax experts at PricewaterhouseCoopers (PwC) in the Midlands are predicting a 'once in a generation' Budget that will have significant impact on businesses, entrepreneurs and individuals in the region.

Tuesday 22 June is likely to herald a new tax reality with changes to capital gains tax (CGT), national insurance contributions, VAT and corporation tax all possible.

To avoid being caught out by potential changes to tax rules, it is essential to consider implications now and forward plan accordingly, says Chris Romans, partner and tax expert at PricewaterhouseCoopers. He says:

"It is difficult to predict what will happen with any certainty but given the current budget deficit, the Chancellor's announcement is shaping up to be a once in a generation affair, bringing significant changes to the tax regime.

"With the extent and timing of potential changes very much open to speculation, businesses and individuals who don't take stock of the potential impact on their assets and tax liabilities now, stand to be hardest hit.

"Thankfully, there is still time to consider tax planning options. Indeed we are witnessing high levels of enquiries from businesses and individuals who are looking to take action before 22 June."

To enable entrepreneurs and individuals to consider their options before the big day, tax experts at the firm have identified the following five key areas where significant change is possible:

·         CGT on non business assets - likely to be increased from the flat rate of 18% to nearer the current higher rates of income tax. Uncertainty remains over whether this will be brought into force from Budget day or 2011.

·         CGT on entrepreneurial business activities - to protect entrepreneurs from an increase in the current 18% CGT rate, "generous exemptions" have been promised, but it is unclear whether such exemptions will be more or less generous than the current rates. There could be a return to a form of taper relief for business assets or an extension of the current entrepreneur's relief. Associated timings are again uncertain.

·         National insurance (NI) - a 1% increase to employer NI contributions could still go ahead but the impact may be reduced by an increase in the lower income threshold at which employer liability begins.

·         VAT - could rise from 17.5 to 20% with yet further increases possible in future. This could be the second increase in VAT this year but again timings are not certain.

·         Corporation tax - headline rate could be cut from 28 to 25% and the rate for small businesses could fall from 21% to 20%.

Chris Romans, partner and tax expert at PricewaterhouseCoopers, concludes:

"While there are some obvious areas where tax regulations may be changed, there could well be some surprises. Entrepreneurs and individuals won't be able to plan for every eventuality but by considering the value of their assets and their existing tax liabilities now they will be prepared for any new tax landscape in late June."