Budget fallout

In her first budget, and subsequent media comments, our new Chancellor of the Exchequer Rachel Reeves has shown that she views inherited wealth as fair game for increased taxation. With over a trillion pounds worth of assets set to be transferred to the younger generations over the next few years, this is not an altogether surprising strategy for her to follow. Politically she sees this money as unearned and giving the recipients an unfair advantage in life.

Taxing matters

While the changes to CGT are less than many business owners feared (albeit the entrepreneurs relief tax rate disproportionally increases over the next couple of years), their businesses will be clobbered with the increase in the Minimum Wage and Employers National Insurance during the company’s lifetime and by the loss of full IHT business relief for asset transfer on death. Some owners may even decide it makes more sense to liquidate the business