10
Autumn Budget 2018
IHT: changes to RNRB The RNRB is intended to make it easier to pass on the family home to direct descendants without an IHT charge. A new measure introduces minor technical amendments to the RNRB relating to downsizing provisions and the definition of ‘inherited’ for RNRB purposes. These amendments clarify the working of the downsizing rules, and provide certainty over when a person is treated as ‘inheriting’ property. This measure will ensure that the RNRB is working in line with the original policy intent, meaning that it cannot be claimed outside of the intended scope and removing any uncertainty for taxpayers. Capital gains tax (CGT)
Individuals
2019/20
2018/19
Exemption
£12,000
£11,700
Standard rate
10%
10%
Higher rate/additional rate
20%
20%
Trusts
Exemption
£6,000
£5,850
Rate
20%
20%
Higher rates (18%/28%) may apply to the disposal of certain residential property and carried interest.
Entrepreneurs’ Relief and Investors’ Relief
The first £10m of lifetime qualifying gains for each relief are charged at 10%. Gains in excess of the limit are charged at the rates detailed above. Entrepreneurs’ Relief: minimum qualifying period extension A new measure increases the minimum period throughout which certain conditions must be met to be eligible for Entrepreneurs’ Relief from one year to two years.
This measure affects individuals who dispose of all or part of their business, individuals who dispose of shares in their personal company on or after 6 April 2019, and trustees who dispose of trust business assets.
It will have effect for disposals on or after 6 April 2019, except where a business ceased before 29 October 2018. Where the claimant’s business ceased, or their personal company ceased to be a trading company (or the holding company of a trading group), before 29 October 2018, the existing one year qualifying period will continue to apply.
“You don’t need a piece of paper with numbers on it to have an economic assessment” Former Brexit secretary David Davis
FOR ELECTRONIC USE ONLY
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