As you probably know the Budget this year is on 3rd March, so some serious thought should be given as to which courses of action you might wish to take to preserve or enhance your financial situation. Various rumours abound, some much more prevalent than others.
I list below some of the main ideas being floated. I am not advocating these for one and all, just making you aware of what they are, in case you wish to change things before that date.
- Aligning income and CGT rates or addressing the boundaries between income and capital gains.
- Reintroducing a form of relief for inflationary gains. Also considering the interactions with the tax position of companies.
- Consider reducing the number of Capital Gains Tax rates and the extent to which liabilities depend on the level of a taxpayer’s income.
- Consider taxing more of the share-based rewards arising from employment and of the accumulated retained earnings in smaller companies at Income Tax rates.
- The possible reduction in the Annual Exempt amount for CGT.
- The possibility that the Government remove the capital gains uplift on death and instead provide that the person inheriting the asset is treated as acquiring the asset at the historic base cost of the person who has died.
- Consider a rebasing of all assets, perhaps to the year 2000 and consider extending gift Holdover Relief to a broader range of assets.
- The possibility that the Government might replace Business Asset Disposal Relief ( previously Entrepreneurs Relief ) with a relief more focused on retirement.
Do get in touch if you have any queries or need further help or advice.