Summary
Gordon Brown will be looking at new ways to tax property and other assets as well as increasing the number of people paying income tax and National Insurance at the higher rate without blatantly raising tax rates, according to tax specialists at KPMG.
Inheritance tax Brown could introduce a new tax that would affect shared ownership of a property. Individuals who have previously given a share of their home to an unmarried partner could face an annual income tax charge on the rental value of the share transferred. An increase in the nil rate band on inheritance tax is overdue as house price inflation has risen by 165% nationally over the last decade while the IHT nil-rate band has increased by just 70%. To match this change, KPMG believes the nil-rate band should jump to (pounds) 400,000 but expects the Chancellor to increase the nil-rate band in line with price indexation from (pounds) 255,000 to only (pounds) 263,000.See the full content of this document
Extract
What's in Store for Taxpayers
Residence and domiciletax regime The concept of domicile could be abolished completely and replaced with an extension of the definition of residence or ordinary residence to identify shorter- term vi...
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