I’m worried that tax is going to increase in the budget, what can I do to protect myself and my family?

1 October 2024 | Wills, Trust & Probate | Author: Darren Perry

You’re right, there does seem to be a definite feeling of change in the air. So, what are the main taxes in the headlines?

Capital Gains Tax (CGT)

This tax is payable when you gift or sell an asset which has increased in value.

CGT seems the obvious target, the annual allowance may be restricted, the rate may increase or, even more troubling, the current free uplift for CGT on death may be removed.

If you have an asset which has increased in value then you should be considering whether you need to do something before the budget. Whether it is better to gift it now or place it into trust depends on your personal circumstances.

Inheritance Tax (IHT)

This tax is payable either when you make a lifetime gift/transfer or upon your death.

Everyone can leave up to £325,000 tax free with the balance being taxed at 40%. There may also be an allowance of up to £175,000 for your house with gifts to spouses or civil partners being exempt from tax

If you’re fortunate and have good advisors it is possible to protect up to £1,000,000 from IHT.

There are certain types of assets which receive tax relief with the main two being business assets and agricultural property. This relief can be up to 100% so, again, it’s vital that your affairs are in order.

Taxation can sometimes feel like playing a game of snakes and ladders with loaded dice. At Fishers we have a wealth of pragmatic, taxation experience. We can help you to play the game of taxation and save money for you and your family.

For more information, and to speak to an expert, please contact Darren Perry.