Move Along… Nothing To See Here
Well, the Budget was certainly ‘as expected’ last week.
As is so often the case nowadays, all of the key announcements had been leaked in the days leading up to the event and so there were relatively few real surprises.
The consultation on a new “British ISA” (BRISA?) and a slight reduction to the top rate of Capital Gains tax on property sales were the only significant announcements that had not been previously rumoured.
What was conspicuous by its absence however was any mention of Inheritance Tax.
Of course there had been some speculation in the run up to the Autumn Statement and then again in the lead up to the Budget that the Conservatives were going to cut or even abolish Inheritance Tax in an attempt to bribe voters.
At Buckingham Gate, we have always felt that this was highly unlikely given the political and economic environment we find ourselves in.
A “tax cut for millionaires” (as it would be reported) always felt like a stretch when we have a cost of living crisis and many people are struggling to make ends meet. In addition, a measure like this would smell awfully similar to the disastrous Liz Truss budget which rocked the market’s confidence in UK PLC as a place to invest and lend money to.
In fact, the only thing that the Budget did confirm on Inheritance Tax is that we can expect no change for some time. To quote the budget document:
“No changes to IHT will take effect before 6 April 2025.”
Of course, if Labour win power later in the year, the situation is unlikely to get better and could well get more oppressive!
Many people will have wasted the last 6 months “waiting to see if anything will happen in the budget” and this delay is so detrimental to our planning and those we leave behind.
The cost of delay when it comes to our Estate Planning is huge and multifaceted:
-We miss out on annual exemptions that are lost if not used each year.
-We miss out on the compound impact of those gifts and exemptions as time passes.
-We miss out on making use of the 7 year clock to make larger gifts from our estate.
-We miss out on planning for our eventual demise to make things as easy as possible for our families.
And the list goes on and on.
As the old saying goes, the best time to have planted an oak tree was 20 years ago, the second best time is today.
As such, there has never been a better time to begin your Estate Planning journey.
If you would like to speak with one of our amazing Estate Planners to find out how we could help you minimise your Inheritance Tax liabilities, protect your assets for those you care about the most and preserve your legacy for generations to come, simply call our friendly team on 0203 478 2160.
