Inheritance Tax
The ‘nil rate band’ – that first part of an individual’s estate which does not attract inheritance tax – has been frozen at £325,000 for the next 4 years (until 2014/2015). For couples, this gives a maximum inheritance tax free sum of £650,000 above which estates will be taxed at 40%. Freezing the nil rate band means that more people are likely to be caught in the inheritance tax net and therefore would be wise to consider lifetime planning and possible exemptions.
Capital Gains Tax
Despite the rumours, CGT remains at 18% with the annual exempt amount for individuals for 2010/2011 staying at £10,100.
Savings
We already knew that the ISA limit was to be increased in April to £10,200 (from £7,200), the limit having been raised for the over 50s last October. The Chancellor has now announced that the ISA limit will rise in line with inflation every tax year from now on.
Stamp Duty
The Stamp Duty limit for first-time buyers has been doubled to £250,000 for this year from midnight tonight (first-time buyers can apply for Stamp Duty Land Tax relief).
There is also due to be an increase on SDLT to 5% on homes worth over £1 million where completion takes place on or after 6 April 2011.
