Today’s budget announcement did not contain the dramatic changes to inheritance tax that were suggested in the press earlier this week. However there were a number of announcements affecting individuals’ tax position. Beneficial measures include:
This is countered by a clampdown on the use of deeds of variation to cut inheritance tax; the lifetime pension relief allowance reduced from £1.25m to £1m; and new measures to cut tax avoidance (e.g. abusing entrepreneurs’ relief to reduce CGT). Increased scrutiny of tax avoidance schemes and higher penalties for abuse of tax rules were also announced. For non-residents, capital gains tax will now be charged on UK residential property disposals.