Treasury hints at CGT and IHT increases from 2005

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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...

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