header-logo header-logo

Budget fallout

08 November 2024 / James Ward
Issue: 8093 / Categories: Opinion , Inheritance tax , Tax
printer mail-detail
196084
James Ward on why the families of business owners, landowners, and those with pension assets will be the most heavily impacted by the recent Budget measures

In her first budget, and subsequent media comments, our new Chancellor of the Exchequer Rachel Reeves has shown that she views inherited wealth as fair game for increased taxation. With over a trillion pounds worth of assets set to be transferred to the younger generations over the next few years, this is not an altogether surprising strategy for her to follow. Politically she sees this money as unearned and giving the recipients an unfair advantage in life.

Taxing matters

While the changes to CGT are less than many business owners feared (albeit the entrepreneurs relief tax rate disproportionally increases over the next couple of years), their businesses will be clobbered with the increase in the Minimum Wage and Employers National Insurance during the company’s lifetime and by the loss of full IHT business relief for asset transfer on death. Some owners may even decide it makes more sense to liquidate the business

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Freeths—Ruth Clare

Freeths—Ruth Clare

National real estate team bolstered by partner hire in Manchester

Farrer & Co—Claire Gordon

Farrer & Co—Claire Gordon

Partner appointed head of family team

mfg Solicitors—Neil Harrison

mfg Solicitors—Neil Harrison

Firm strengthens agriculture and rural affairs team with partner return

NEWS
Conveyancing lawyers have enjoyed a rapid win after campaigning against UK Finance’s decision to charge for access to the Mortgage Lenders’ Handbook
The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
The Solicitors Act 1974 may still underpin legal regulation, but its age is increasingly showing. Writing in NLJ this week, Victoria Morrison-Hughes of the Association of Costs Lawyers argues that the Act is ‘out of step with modern consumer law’ and actively deters fairness
A Competition Appeal Tribunal (CAT) ruling has reopened debate on the availability of ‘user damages’ in competition claims. Writing in NLJ this week, Edward Nyman of Hausfeld explains how the CAT allowed Dr Liza Lovdahl Gormsen’s alternative damages case against Meta to proceed, rejecting arguments that such damages are barred in competition law
back-to-top-scroll