Posted by James McNeile, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Chancellor’s Autumn Statement – 05.12.12
Royds Private Client department was interested to learn of the 1% increase in the inheritance tax nil rate band – from April 2015.
Some sources report this increase as coming into effect next year, but the Treasury and HMRC confirm that the nil rate band will remain frozen, as it has been since April 2009.
This announcement replaces the previous decision to increase the nil rate band in line with the Consumer Prices Index from April 2015.
As of April 2015, an individual will be able to leave £329,000 (instead of £325,000) free of inheritance tax upon their death, or spouses/civil partners will be able to leave £658,000, if their nil rate band has not been used up by lifetime gifts. This rise is not as generous as historical increases in the nil rate band until 2009, nor as generous as it would be under the CPI inflation rate.
The capital gains tax annual exempt amount also looks set to increase by 1%, but from April 2014 onwards.
The highest rate of personal income tax (50% for income over £150,000 p/a) will still fall in April 2013 to 45% and this will apply to trustees of discretionary trusts as well.
Pensions savings tax allowances will be cut, but we are pleased to hear that HMRC’s budget will not be cut.
For advice or further information please contact Tony Millson, Head of Private Client 020 7583 2222 or firstname.lastname@example.org