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

From the annual review to the 'always on' adviser/client relationship

From the annual review to the 'always on' adviser/client relationship

'Regular reviews will still play an important role, but clients' lives do not follow a servicing calendar'

Tessa Lee
clock 28 July 2026 • 4 min read
Number of British millionaires drops to lowest level since 2008

Number of British millionaires drops to lowest level since 2008

Estimated number of 442,000

Sophia Panayi
clock 28 July 2026 • 3 min read
Tessa Lee: The invisible cost of poor client data

Tessa Lee: The invisible cost of poor client data

How can you improve data quality?

Tessa Lee
clock 23 July 2026 • 4 min read