Updating post from Reddit.
Hi everyone, what changes do you expect regarding inheritance tax and the 7-year rule for gift tax relief following the New Budget announcement? I'm particularly interested in the 7-year rule for gifts. What potential changes might be implemented? Will they tax the gift regardless of when the giver passes away, even if there are more than 7 years after the gift was made and the giver still lives? How would that help families passing on their wealth to younger generations?
Honestly, there is little value in second guessing what changes will be made and even less point in trying to move ahead of potential changes.
If you’re considering a change to tax management then you should do that based on benefits under current rules.
In the spirit of your question, I see IHT outside primary residence taking a hit as that’s viewed as a rich person tax which makes it more palatable (those who are actually wealthy will just offshore it). I don’t see changes to the 7 year rule because it wouldn’t raise enough tax to be worth any backlash. Nondom, CGT and dividend taxes will cover the majority is my guess. Potential for business NI increases (daft but the public will on average be okay with that) and a change to the debt definition will open the taps
These posts asking people to guess are getting pretty tiring. Can’t people just wait for the budget?
It’s nervousness I suppose. I think some people know they’ve not had the most tax efficient setups possible, the encroaching budget is just making them realise how much they may need to alter.
That’s why my first answer elements are always “be tax efficient based on current rules then worry about changes once they happen.”
I think some also imagine the announcement on the 30th (or 31st?) means they’ll be demanded to pay an additional tax bill on the 1st. Once they realise it’ll be around a year before it comes into effect they’ll calm.
Very little. Maybe the 7 years becomes 10.
CGT on shares up to 30% nowt on property.
Liebours arse has gone. LOL