One of the big stories from the Finance Bill 2004 relates to the proposals on pre-owned assets (POA). The government agreed to make a number of amendments to the rules set out in Sch 15 to the Finance Bill. These rules introduce an income tax charge from 6 April 2005 on assets which, in brief, have been given away by an individual but that person has retained the right to use or enjoy the asset (while circumventing the existing inheritance tax (IHT) gift with reservation rules). Some of the key changes are as follows: 1. De minimis disregard increased The de minimis figure, previously an amount of tax not exceeding ￡2,500, has been increased to ￡5,000. 2. Cash gifts made more than seven years ago.
展开▼
