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01 July 2010 / Geraldine Morris
Issue: 7424 / Categories: Features , Tax , Family , LexisPSL
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Household Budgets

What did the Budget offer families stretched by family breakdown? Geraldine Morris reports

At the sharp end of family breakdown, family lawyers know only too well how making two households out of one stretches the finances of most families to the limit. As set out in more detail below, there’s some good news from last month’s budget, but for middle income families it’s largely bad news. The main knock-on effects for family lawyers trying to reach a workable settlement are:
 

  • Higher tax for higher rate tax payers means less disposable income available for periodical payments and/or to pay basic household expenditure.
  • Higher rates of capital gains tax (CGT) could impact on capital settlements where capital assets need to be sold to fund housing/lump sum payments.
  • For bigger money cases, the news that entrepreneur’s relief is to be increased is good news, although unlikely to assist the average family.
  • The freezing of child benefit for the next three years will impact most on the lowest income families. 
  • Changes to tax credits will benefit (slightly)
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NEWS
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The Supreme Court has restored ‘doctrinal coherence’ to unfair prejudice litigation, writes Natalie Quinlivan, partner at Fieldfisher LLP, in this week' NLJ
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
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