Impact of the Chancellor's announcement on farming families
- AuthorCaroline Dowding
We all waited with bated breath yesterday for the Chancellor’s announcement and the proposed changes to Capital Gains Tax (“CGT”) and Inheritance Tax.
It had been widely speculated that CGT rates would rise so that they stood more inline with income tax rates (i.e. they could double!). There was also talk about CGT personal allowance rates being reduced, changes to holdover and date of death re-basing being removed.
Many of us may feel that we were lucky in that, in fact, Rishi Sunak made no changes in his statement. However, we must accept that these changes are coming. We must work towards an Autumn statement when undoubtedly further provisions and changes are likely, in addition to the freezing of personal allowances for a number of years to come.
The CGT and IHT changes will significantly impact us all but will have particular ramifications for our farming clients who often utilise CGT holdover relief and IHT agricultural relief. Whilst many clients have already taken the opportunity to prepare for these changes, it is imperative for those that haven’t to now consider succession and the future before the next budget, and the possible removal of these attractive reliefs.
For advice on succession planning, please contact our specialist agriculture and estates team. I can be contacted on 01206 217394 or firstname.lastname@example.org.