Budget Analysis 2021
What does it say about Inheritance Tax and Capital Gains Tax?
The mainstream analysis, example below, will focus on the rise in Corporation Tax scheduled for April 2023, an extension to the zero-rate threshold for SDLT, further extension of the furlough scheme and investment.
The Budget also said some important things about Inheritance Tax and Capital Gains Tax, which will be less-widely reported:
The Nil-Rate Band and Residence Nil-Rate Band will remain at existing levels until April 2026 (£325,000 and £175,000, respectively).
Capital Gains Tax
The Annual Exempt Amount will remain at existing levels until April 2026 (£12,300 for individuals, personal representatives and some types of trusts and £6,150 for most trusts).
Some had feared this Budget would see wholesale reforms to Inheritance Tax and Capital Gains Tax.
Whether Inheritance Tax and Capital Gains Tax will see reform in the next Budget is another matter.
Reluctance to reform in this Budget should not be taken as an indication that will be no significant changes over the next few years.
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The information in this article is necessarily of a general nature. Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors.