Nick Scull
Head of Tax
nscull@garbutt-elliott.co.uk
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Nick Scull |
Yesterday’s Budget was one of the quietest for many years in terms of any major announcements on tax.
The key measures to impact us in April had already been announced, and the main news item yesterday was the postponement of the “income shifting” rules until 2009.
The Revenue consider it “unfair” that one individual might work in the business directly generating profit for it, and share that profit with another individual in a tax-efficient way. The new measures are likely to impact on most family businesses, and the delay in introducing them must be welcomed.
The abolition of the 10% capital gains tax rate under taper relief will happen and we have only a little over 3 weeks left to put any planning in place to avoid the increase to 18%. Although the new entrepreneurs’ relief offers some respite, it is by no means as widely applicable as taper relief and is limited in value. You should check with us if you are in any doubt as to how you will be affected by the new regime.
Private clients will now be able to transfer any unused “nil-rate band” for inheritance tax to the surviving spouse. This will affect all those married couples who have executed wills with trusts built in. Such trusts will remain valuable tax planning tools, but should now be reviewed to ensure that they are focussed on the right assets.
As ever, please do call your usual contact if you would like to discuss anything arising out of the Budget or any tax matter generally.
Please use the navigation bar on the left to see further details of all the key issues.
Contact: nscull@garbutt-elliott.co.uk