Sintons’ head of wills, trusts and probate, Paul Nickalls, looks at the implications of yesterday’s Budget for private clients.
There wasn’t a lot in the budget for private clients.
For example, there was no change to either capital gains tax or inheritance tax, despite pre-Budget speculation that the Chancellor would tinker with both.
Saying that, the fact that the inheritance tax threshold has been frozen at £325,000 until 2026 and the planned inflationary rise in the residential nil rate band has been scrapped will mean that more people will have to pay inheritance tax.
Furthermore, the fact that the capital gains tax annual allowance has also been frozen until 2026 will inevitably mean that more tax will become payable on any profits that are made following the sale of an asset.
In a similar vein, the announcement that the income tax thresholds will be frozen after April until 2026 will result in an extra £19 billion of tax being paid by the end of 2025/6 and some 1.3 million people starting to pay tax for the first time and a million more becoming higher-rate taxpayers.
