Rachel Reeves was expected to reduce the current 40 per cent level of tax relief on higher earners in the Budget, but has changed direction
The Chancellor is said to be backing away from making changes to tax relief on pension contributions as a result of the impact it could have on the public sector.However, there are other possible moves Labour could make to fill the “black hole” in the public finances, including making changes to
People trying to take action with regards to property sales may face a bigger challenge to get around potentially higher CGT rates.Mr Morrow-McDade said: “Property conveyancing takes around three months, so it’s likely to be too late to sell a property on the open market before possible changes on 30 October.”
This might be critical to achieving a lower CGT rate. If the Chancellor increases CGT rates effective from the Budget date, if that is after entering into a sale contract but before completion, you might be liable under the “old” rates if you have entered into a sale contract before 30 October but with completion taking place later.
The savings can be large as the gain on assets held at death could have built up over several decades. The former, more bold, step would probably mean the estate will have to pay the CGT bill, as well as any IHT bill, and that could mean having to dispose of some assets – but would raise funds more rapidly for the Treasury.
“Whereas bequeathing the property in a will would only have incurred IHT and no CGT because of the uplift rule on death.”Under business asset disposal relief, business owners may be able to pay less CGT when they sell all or part of their firm, reducing from 20 per cent to 10 per cent.
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