Pre-Budget Report - key changes
In his speech the Chancellor announced some major developments. No doubt further changes will be forthcoming in the press releases we are about to read.
- The abolition of taper relief and the introduction of a flat rate CGT charge from April 2008 – opening up some interesting planning opportunities in the next few months.
- Making the IHT nil rate band transferable between spouses and civil partners, so that a couple will be able to leave £600,000 at current rates without having to transfer assets from the survivor when the first of them dies.
- A flat rate charge on non-UK domiciled residents who have been resident in UK for more than seven years.
- Review on simplifying tax for the self-employed.
- Action on ‘income-shifting’ – presumably in response to the Arctic Systems case.
Our Pre-Budget Report Summary contains comprehensive coverage of the key measures.
