Treasury hints at CGT and IHT increases from 2005

clock

Further investigation of today's pre-Budget reports by HM Treasury indicates the government is considering a rise in income tax, capital gains and inheritance for the year 2005-06.

A separate 20-page paper entitled Tax ready reckoner and tax reliefs includes a table of tax allowances and limits for 2004-05 and 2005-06 which suggests the government may be looking to increase the personal income tax allowance by £150 a year to £4,895 while the basic rate income tax limit could be raised from £31,400 to £32,400. One of the difficulties of assessing whether these are indicators of future tax exemptions is there is nothing within the document to specify whether these are 'what if' calculations - ie what if the government raised these levels - to assess what the cost m...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Tackling the biggest challenge facing financial services in the UK

Tackling the biggest challenge facing financial services in the UK

'Trust in financial services is slipping'

Professional Adviser
clock 04 March 2026 • 4 min read
'No news is good news': Spring Statement stability welcomed

'No news is good news': Spring Statement stability welcomed

‘This was a low-key event, especially for pensions’

Jenna Brown
clock 03 March 2026 • 4 min read
FCA opens targeted support authorisation gateway

FCA opens targeted support authorisation gateway

Firms can now apply for permission to provide targeted support

Isabel Baxter
clock 02 March 2026 • 2 min read