You should have received our summary of the pre budget statement.  If you have not received this update you will find it on our web site (http://www.albertgoodman.co.uk/news_2007-pre-budget-statement_12_11102007.htm).

The main proposals, which included some major changes, are set out again below. 

• The abolition of taper relief and indexation allowance for capital gains tax (CGT)
• The introduction of a flat rate of CGT for individuals of 18%
• A significant change in inheritance tax relief for married couples and civil partners
• Non domiciles to pay an annual charge of £30,000 for their tax advantaged status
• Proposals to stop the tax savings available to businesses by income shifting between family members
• An increase in the car fuel scale charge
  

You will find more detail on these changes on the web link above.  Please do get in touch if you have any questions.

In the meantime one of the major changes in the pre budget statement is to capital gains tax and there will be some big winners and losers post 5 April 2008:-
 
The Winners

• People holding non business assets such as investment/rental properties and shares in quoted companies.
• People that have held assets for a short period of time.

If you think you might be a ‘winner’ under the new capital gains tax regime you may like to consider delaying any sales to post 5 April 2008 but please speak to your usual contact at Albert Goodman in the first instance.

 

The Losers

• People holding shares in unquoted trading companies
• People holding assets used in their business
• People holding shares in their employers company
• People holding commercial property let to a trading business
• People that have held assets since pre 1998.

If you think you may be a ‘loser’ under the new capital gains tax regime and are in the process of considering selling certain assets you may like to bring forward any impending sales to pre 5 April 2008.

If you are not intending to sell assets in the next few months but are concerned about the extra capital gains tax due on a sale post 5 April 2008 we would be happy to advise you on methods of crystallising the gains under the current legislation so that you obtain the benefit of the current legislation and the lower tax rates without making an actual sale of the asset until after 5 April 1998.

Posted on 12 Oct 2007