Rachel Reeves, the current Chancellor of the Exchequer, has refused to confirm or deny that there will be changes to IHT or CGT in the upcoming Budget.
The Prime Minister has even stated that it will ‘painful’ for some.
So, we are all aware that some taxes will go up at the end of October. What we don’t know at the moment is by how much and who will be hardest hit. Sir Kier Starmer has mentioned that it will be those with the ‘broadest shoulders’, but how do you define broad? It depends where you are looking from. A non-taxpayer may think it is someone paying the higher rate, which kicks in a little over £50k, but a higher rate taxpayer is likely to think it is an additional rate taxpayer (over £150k). Someone in the 45% bracket will probably think it’s higher still at, say, £250k. It’s all a bit subjective really.
But we are fairly sure CGT and IHT are going up and this could affect a lot of people. Planning can help. Planning for what is likely to happen can be better than taking a wait and see option.
Crystalising capital gains now may reduce future liabilities and can be used as effective estate planning, or can be used to reduce overall CGT for an asset you can’t dispose of before the Budget.
If you want to talk about how planning could help you and your family, with no tax avoidance schemes, please contact the Private Client department at Gepp Solicitors. Our experienced and friendly advisers would be pleased to have a chat.
