B P Collins Solicitors: talk to the experts
Gerrards Cross: +44(0) 1753 889995
Beaconsfield: +44(0) 1494 675363
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• Inheritance Tax (IHT)
Any unused Nil Rate Band from the first death for married couples / civil partners will be transferred to the surviving spouse or civil partner and, on the second death, will be available as a percentage to offset against the estate before any IHT is payable.
Read our Inheritance Tax Nil Rate Band report to fully understand the effect of these changes.
• Capital Gains Tax (CGT)
With effect from 6 April 2008, a flat rate of 18% CGT will apply. There will be no indexation or taper relief, however the annual exemption will remain. Clients, in particular Executors and Trustees, should consider the effects of accelerating or deferring the sale of assets before this date.
For business owners / entrepreneurs the effect of this change could influence decisions regarding the purchase or sale of a business.
Read our Buying or selling a business before 6 April 2008 report for further information.
• Non-Domiciled Residents
Non-domiciled residents in the UK currently benefit from the remittance basis of assessment for income and capital gains, but under the new proposed scheme will be charged an annual fee of £30,000 to retain this status. The Government propose to enforce the charge once an individual has been resident in the UK for seven years, therefore anyone who became a resident before 5 April 2001 will pay the fee from 6 April 2008.
Please speak to Partner and Head of the Private client practice, Jeremy Mills, if you believe this will affect you, or contact privateclient@bpcollins.co.uk.
