Professional Tax Consultancy

 The second budget for the year has been announced for 22 June.  As ever we are playing guess what is to be included and what is to be attacked.  It is thought that the IHT nil rate band increase will not be there but the increase in the personal allowances to £10,000 may be. It is likely that VAT will be increased, possibly to 20%.  There are, however, a number of rumours that are of more concern to all of us.

 It is suggested that Capital Gains will be brought in line with Income Tax rates, as they were previously, which would mean that gains could be taxed at either 40 or 50%.  Apart from the obvious need for money for the government, this also is likely to be brought in to stop people changing income into capital to avoid the new 50% tax charge. Vince Cable has always said that he wants to stop avoidance and this would go a long way to do so.  It is likely that other ways will be brought in to stop a number of the current schemes that are on the market.

 If you have clients that may need to use a scheme then now is the time to do so.  In conjunction with our providers we are able to offer you products that will cover all your needs.  If you are looking at EBT or EFURBS then you need to contact us as soon as possible so that these can be in place before the budget.  We also have a product that mitigates CGT on assets of £500,000.  These are all within the current legislation and we do not currently see any problems with them.

 If you would like some further information please do not hesitate to contact us.