Budget High Lights
This budget produced few surprises. Nevertheless we are already busy advising on certain aspects of it. Charles Abbott, head of our Wills, Trusts and Probate department says:
“Not many local houses are sold for under £120,000 but for those that are the increase in the stamp duty threshold from £60,000 to £120,000 is very welcome. We can advise you on all the stamp duty implications of the budget. Disadvantaged stamp duty relief was abolished which will affect some of our clients.
“Anyone with elderly parents or who is worried about inheritance tax would be advised to take some legal advice. The IHT threshold is increased to £275,000 from 6th April 2005. Only estates at or above that level pay inheritance tax (at 40%). However local house prices mean many of our clients fall within IHT levels these days. The limit will rise to £285,000 on 6th April 2006 and to £300,000 a year after that. Separately from the budget the new rules about pre-owned assets have just been released. Many local people need to decide if they want to unscramble inheritance planning schemes put into place where they retained a benefit in the asset – for example where a parent sold or gave their home to their child but continued to live there rent free. The rules are very complicated indeed and advice should be sought.
“If you have a relationship with a partner of the same sex you are able to register as same-sex partners. It is as well to take legal advice on this and make wills. The budget has provided that registered same-sex partners under the Civil Partnership Act 2004 will be taxed in the same way as married couples from December 2005. The Act applies from 5th December 2005.
The budget also introduced new rules for discretionary trusts, some backdated to April 2004.
If you need any advice on how best to organise your affairs after the budget and before the end of the tax year on 5th April 2005 contact Charles Abbott on 0117 929 0451. or e-mail cabbott@metcalfes.co.uk
This press release summarises the law on issues which we believe may be of interest to your business. It is not a comprehensive review of the subjects and accordingly is published without responsibility for loss occasioned to any person(s) acting or refraining from action as a result of information published