TaxPersonal TaxNI and capital gains tax to rise in PBR

NI and capital gains tax to rise in PBR

Inheritance tax could also be set to rise as government tackles national debt

Experts have predicted chancellor Alistair Darling will concentrate on
national insurance and inheritance tax in the pre-Budget Report next month,
The
Scotsman
has reported.

John Cairns, head of tax at BDO Scotland, said the government could consider
raising the NI rate above the upper annual earnings limit of £43,875, currently
at 1%. “A lot of people have earnings over £43,875 but below £100,000 and are
suffering no extra tax, so the government could see that as an opportunity to
raise money,” he told the newspaper.

Other measures that have been predicted are the raising of the capital gains
tax rate to either 25% or 30%, and restrictions of inheritance tax for business
and agricultural property. However, Ronnie Ludwig, partner at Saffery Champness,
chartered accountants in Edinburgh, has demanded the chancellor consider raising
the IHT threshold for individuals.

“It was originally introduced to tax only the particularly wealthy who chose
to hold on to their wealth well into their old age,” Ludwig said.

“But even with the current state of the property market, there are many
people who are pushed into the IHT net purely because of the value of their
home,” Ludwig told the Scotsman.

Further reading:

PBR tax hike fear sparks advice stampede from
entrepreneurs

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