TAX UPDATE AFTER THE 2021 BUDGET: WHAT CHANGES ARE, OR MIGHT BE, COMING AND WHAT DO THEY MEAN FOR PRIVATE CLIENTS

Will the Budget on 3 March simply address expenditure needs, or start to deal with the tough tax choices needed?! There may be a second Budget in 2021, when we are clearer about moving on to a “new normal”, or big tax changes may come in 2022. When tax changes do come, IHT & CGT will be in the firing line. This talk will explore tax developments and IHT planning ideas with the Co-Editor of the new Law Society IHT Planning Handbook, John Bunker. The presentation will bring you up to date on current proposals and how best to plan for them. It will include any changes which are brought into effect from the budget and is likely to include:

• The impact of any changes that have been made on Wills, Variations and Lifetime Giving
• Possible further changes, with particular reference to the Office of Tax Simplification (OTS)’s first report on CGT (November 2020) and their IHT report (July 2019)
• The OTS repeated its proposal to end CGT “uplift” on death where there is a full spouse exemption or 100% APR or BPR. What needs to change for planning?
• Proposals for business also include increasing the “trading threshold”, which would affect many businesses with significant investment income alongside their trading
• Changes to lifetime IHT exemptions, reducing CGT annual exemptions and increasing CGT rates (more into line with income tax)? What should we advise clients?

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer