Legal
|
|
The Budget 2005 & Inheritance Tax
   
|
How To Choose The Best Boston Personal Injury Law Firm
You should start looking on the Internet - it's a quick and easy way to get lots of information about them. .....
IntroductionYou should start looking on the Internet - it's a quick and easy way to get lots of information about them. .....
'The Government's economic objective is to build a strong economy and a fair society, where there is opportunity and security for all."
So reads the opening statement of the Labour Government's 2005 Budget. But the word 'fair' is wide off the mark when considering the incidence of inheritance tax on an increasing number of homeowners over the past few years.
The Inheritance Tax Problem
Over the past few years inheritance tax ceased to be the 'rich person's tax' or the 'voluntary' tax which it used to be. The cause of the problem has been the ever increasing scale of house prices resulting in property values which far exceed the Nil Rate Band exemption for inheritance tax.
How To Increase Your Profits
Not all customers have equal value to your organization; in fact, some customers are more profitable than others are. These .....
Research conducted by stockbrokers Brewin Dolphin, there are an estimated 2.4 million homes across the UK that are now valued above the '263,000 inheritance tax threshold, before taking any other assets into account. And one in five people anticipating an inheritance have no idea that anything over and above the threshold will be subject to 40% of tax.Not all customers have equal value to your organization; in fact, some customers are more profitable than others are. These .....
In summary, the number of homes sold which were above the inheritance tax threshold rose from 3% in 1994 to 14% in 2004 and the Government has pocketed a staggering '3.3bn in inheritance tax since 1997!
The 2005 Budget
The inheritance tax issue was a main concern for the Chancellor Gordon Brown after various professional bodies have stressed the need for the threshold to be increased. Having heard the arguments the Chancellor did just that.
Unmarried Couples Could Defend Their Relationships.
A power of attorney is a legal document that allows you to dictate who you would like to make decisions on your behalf. While there are many useful purposes for a power of attorney, they are especially important to unmarried couples, which .....
A power of attorney is a legal document that allows you to dictate who you would like to make decisions on your behalf. While there are many useful purposes for a power of attorney, they are especially important to unmarried couples, which .....
The current Nil Rate Band threshold is '263,000 and the Chancellor has announced that this is to be increased to '275,000 for the forthcoming tax year 2005/2006 and then further increased to '285,000 and '300,000 the following two years.
As a result of these increases the Chancellor has argued that 94% of estates would not pay inheritance tax. So has the Chancellor done enough'
Adequate Increases'
Are the increases to the inheritance tax threshold good enough' Should they have been increased further' It is certainly true that previous inheritance tax increases have not been so steep; usually the increases are made in line with current inflation rates. However, this Budget has seen an increase which is way above inflation.
On the other hand, the contrary argument is that the high rise in house prices necessitated such an increase, and even this may not be enough. The Halifax Building Society calculated that had the inheritance tax threshold increased in line with house price inflation over the last 10 years, then the current threshold would be sitting at '390,000 - significantly less than the figure announced by Gordon Brown.
Anthony Castelli, Attorney At Law Announces Website Update
http://www.castellilaw.com .....
http://www.castellilaw.com .....
Conclusion: Budget Blues
So was this a 'bad' budget' from the inheritance tax point of view' Not entirely.
The Annual Gift Tax Exclusion: Getting The Edge
Whether helping the kids with a down payment on their first home, paying the premiums on a life insurance policy in an .....
Any increase in the Nil Rate Band is to be welcomed as it sets free some of those caught in the inheritance tax net. As Simon Massey (partner with chartered accountancy firm Menzies) told BBC News, "The increase to the Inheritance Tax threshold is a long way above inflation and is very welcome...It is good to see something being done."Whether helping the kids with a down payment on their first home, paying the premiums on a life insurance policy in an .....
So whilst the increase may not exactly be in line with the current house price situation, it will certainly be a relief to many, and any increase is better than no increase at all.
JsByrne
LLB (Hons) PGDip.LPc.
www.Draft-Your-Will.com
About the Author
Why Even A Simple Contract Can Save Your Bacon
Every business owner says it; "Do I really need a written
contract?" The answer is "YES, YES and YES!" Using a written
contract is like buying insurance .....
Every business owner says it; "Do I really need a written
contract?" The answer is "YES, YES and YES!" Using a written
contract is like buying insurance .....
Miss Janine Byrne holds a Bachelor of Law degree with Honours & a post-graduate diploma in Legal Practice. Also gained qualification in Wills Writing & is the owner/author of www.Draft-Your-Will.com and DYW Wills & Estate Planning Newsletter www.Draft-Your-Will.com/Legal_Updates.html