July Budget 2015: Capital Taxes

No change to Capital Gains Tax

There have been no changes announced to Capital Gains Tax

The Nil Rate Band for Inheritance Tax (IHT) is increased in respect of a Main Residence

The normal IHT nil rate band of £325,000 will be frozen until April 2021. However, a new band will be introduced from April 2017 where a main residence (including a former main residence) is passed on death to direct descendants. The band is available in respect of a single residence. The band will be as follows:

  • 2017-18 £100,000
  • 2018-19 £125,000
  • 2019-20 £150,000
  • 2020-21 £175,000

From 2021-22 the allowance will increase in line with the Consumer Prices Index.

The additional nil rate band will be reduced by £1 for every £2 by which the estate has a net worth in excess of £2,000,000.

It is anticipated that this additional rate will be available where a person downsizes or ceases to own a property and then passes assets of an equivalent value to descendants.

There will be changes to the taxation of UK Non-Domiciles

We will provide details of these changes to “Non-Doms” if requested.