Osborne’s Budget 2011 gives very little to individual tax payers

There was nothing unduly generous for individuals in this Budget in spite of the increase to the personal allowance.

CGT shake up requires careful planning for investors

The weekend papers were full of news about the planned increases to capital gains tax (CGT) announced by the new government. Some commentators have argued that this change has been on the cards for some time, although during the Election campaigning it was only the Lib Dems that formally announced their intentions. Subsequently incorporated into the coalition’s policies, we can expect CGT rates for top earners to more than double for non business assets and the exemption threshold to be cut from £10,100 to between £1,000 and £2,000.

These changes will be painful, especially since for the past 2 years, the flat rate of 18% has been extremely generous. But given the poor state of the Treasury’s coffers, the disparity between income and capital tax rates cannot be sustainable.

Coalition tax policies unveiled mark the end of ‘E’ Relief

Last week, the new Conservative LibDem coalition government was announced amid a flurry of guarded excitement and scepticism. The coalition has been quick to stamp out suggestions that their political differences will be too marked to produce effective financial policy and so far, the speed with which agreements have been reached is impressive and very positive in terms of their quality.

The Fairness of the Tax System

If ever there was a policy designed to score quick political points it’s the Lib Dem’s suggestion that people with a property over £1m should pay an extra tax of 0.5%. And if there was a move that is more demoralising to tens of thousands of hard working small business owners, I’d be surprised. However, the proposals do raise an interesting question as to the fairness of the tax system and especially the discrepancy between capital and income tax rates, writes Lesley Stalker.

AVOID THE 3 CLASSIC INHERITANCE TAX PITFALLS

Too many people succumb to the top 3 classic tax pitfalls by failing to link their wills with tax planning. And this results in payment of inheritance tax at 40% when it could be entirely avoided.