header-logo header-logo

08 November 2024 / James Ward
Issue: 8093 / Categories: Opinion , Inheritance tax , Tax
printer mail-detail

Budget fallout

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 rather than it face a significant hit at that point and

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

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Pro bono is celebrating a silver anniversary, with initiatives putting businesses and students at the heart of access to justice
Choosing the wrong expert can cost a clinical negligence claimant more than their case
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
back-to-top-scroll