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We support you and your business at every stage with expert advice that delivers outstanding results.

We provide audit, accounting, tax and business advice to individuals, family, and owner-managed businesses from across our offices in Leeds, Newcastle and York.

Nick Scull, Head of Tax

Budget for Recovery...What You Really Need to Know!

Capital gains tax was thought by many to be a target for increased rates or reduced reliefs.  What we saw was a freezing of rates.  So selling an investment asset after 5 April will still attract just 18% tax compared to a new top income tax rate of 50%.  Most people’s investment strategies should now be revised to take full advantage of this.

You will be better off if you sell your business next tax year for proceeds of over £1m.  Entrepreneurs Relief – which gives an effective 10% rate band on business sales – is extended from £1m to £2m. The worry is that whichever new Government is formed later in the year will hold a new Budget and may still amend this.  We can help you by giving you the option (once the asset is finally sold) of having the gain taxed now or on the final sale, whichever gives the lower tax bill.  If you change your mind at a later date and keep the asset, then no liability is incurred. A good result all round!

We have also been advising clients on the use of trusts to take assets off a company’s balance sheet and protect these assets from both Inheritance Tax and trade risks.  A number of tax scheme providers have been promoting highly aggressive versions of this concept, and not surprisingly this has been picked up in the Budget.  We are pleased to advise you that we can continue to help clients in this area for the coming year ahead.

Stamp Duty on property is already high at 4% for values over £500,000 and this will rise to 5% on residential property costing over £1m next year.  We continue to offer clients a planning opportunity which eliminates Stamp Duty on property in the vast majority of cases, so do contact us for further details.

Salary sacrifice arrangements also continue to offer huge savings.  These work on the concept that it is cheaper for an employer to pay for some things (out of pre-tax profits) than the employee (out of post tax and post NIC pay).  Small weekly savings can quickly add up across a workforce and a full tax year.  Examples include

• Pension contributions
• Day subsistence allowances for workers away from their base of work
• Childcare vouchers
• Low emission company cars (which can include some 3-series BMWs for instance)

Inheritance Tax bands have been frozen for 4 years, inevitably dragging more and more people into the IHT net.  We continue to offer a whole range of planning ideas which can make IHT of little concern for our clients. Make sure you are protected by taking advantage of the help and advice we can offer.

At Garbutt & Elliott we have considerable experience in advising on all aspects of taxation, providing solutions to help our clients pay less tax. If you would like further information on any of the areas covered in our Budget summary or have seen anything in the media coverage that you would like information on please contact Nick Scull, Leeds 0113 2739600, York 01904 464100 or by email to nscull@garbutt-elliott.co.uk to explore the tax saving opportunities available to you. Please contact Nigel Shaw for any Inheritance Tax queries on 0113 2739600 or by email nshaw@garbutt-elliott.co.uk