Grant Thornton predicts PBR measures

Extension of the 12-month stamp duty holiday introduced in September, more inheritance tax for homeowners and a crackdown on those who stash away their money in offshore accounts to evade tax, are some to the pre-budget report forecasts from several experts at Grant Thornton.

Karen Campbell, Grant Thornton head of stamp taxes, said extending the stamp duty suspension for properties worth less than £175,000 could be on the cards. 'It would not be a major surprise if it were to become permanent,' she said.

Grant Thornton thinks significant changes to inheritance tax are unlikely beyond the pre-announced tax free limits of £325,000 for 2009-10 and £350,000 for 2010-11. Maurice Fitzpatrick, a senior Grant Thornton tax manager, noted the government would be considering house prices continuing to fall in its inheritance tax decisions.

Gary Ashford, Grant Thornton tax investigations director, said: 'Given the current economic outlook, the Treasury is in need of extra revenue and encouraging people to come clean to pay tax on their offshore accounts is looking like a very real option.'

Further reading:

Advisers await foreign profits plans in PBR

Strong odds for VAT cut in PwC PBR forecast