IMPLICATIONS FROM THE PRE-BUDGET REPORT

摘要

There are a lot of changes coming up, but I will be looking to focus on the changes to Inheritance Tax (IHT) announced in the Pre-Budget Report. Please note that the changes need to be ratified in the Finance Bill and at the time of writing there is a lot of lobbying to change the Capital Gains Tax proposals, so I plan to cover these in the next article. However, the same caveat applies to the changes in IHT. But before doing so, given the propensity to announce changes 18 months ahead, it will be worth highlighting a major increase that kicks in for the next tax year, which is the large hike in the Upper Earnings Limit for National Insurance (NI), up from £34,840 p.a. to £40,040 p.a.. This will result in a rise in NI contributions for most working members of approximately £500 p.a.