Preparing for Potential Rises in Inheritance Tax and Capital Gains Tax ahead of the October Budget
As the largely anticipated October Budget approaches, there's an increasing buzz about potential changes to Inheritance Tax (IHT) and Capital Gains Tax (CGT). Chancellor Rachel Reeves has hinted at tax increases, suggesting 'difficult decisions' are on the horizon. Many are speculating rises in both Capital Gains Tax and Inheritance Tax.[1]
Throughout the election campaign, it was promised that major taxes like Income Tax, National Insurance, and VAT were reportedly safe from hikes. Therefore, the focus may shift to key Inheritance Tax reliefs such as Business Relief and Agricultural Relief along with possible increases to Capital Gains Tax, in order to attempt to fill the frequently mentioned ‘unexpected £22 billion black hole’.[2]
Understanding the Impact
Emily Davidson, a solicitor in the Wills, Tax and Probate team at Enoch Evans Solicitors, emphasises that while specifics are uncertain, any increase in these taxes could significantly affect estate planning. She shares:
‘Whilst it is impossible to confirm the changes that may be brought about by the October budget at this stage, we can be certain that any increases to Inheritance Tax and Capital Gains Tax will certainly impact many estate planning decisions made by clients from now on.’
Preparing Ahead
To minimise potential tax increases, it's prudent to evaluate your estate planning strategies now. Utilising existing reliefs and consulting with professionals could mitigate future tax burdens. If you need guidance, contacting experts like the Wills, Tax and Probate Team at Enoch Evans can be a beneficial step. They can provide advice tailored to your situation, helping you navigate any changes that the October Budget may bring. The Enoch Evans Solicitors team is proud to be accredited as members of the esteemed Law Society Wills and Inheritance Quality Scheme (WIQS), ensuring that all advice given to clients meets the highest standards. This accreditation also signifies that clients are kept informed about progress and treated with professionalism and sensitivity. The team has proudly maintained this accreditation for over a decade, and this year, Enoch Evans Solicitors is celebrating its 140th anniversary. To get in touch with a member of the Wills, Tax and Probate Team at Enoch Evans please call on 01922 720333.
[1] https://news.sky.com/story/strong-tax-rise-hint-as-reeves-says-there-will-be-more-difficult-decisions-to-come-at-budget-13187026
[2] https://www.bbc.co.uk/news/live/c0rw9edy00zt?post=asset%3A632c04b3-d154-4710-924e-48e57073f217