Pre Budget Report December 2009 - Nil Rate Band frozen for next Tax Year
11 Dec 2009
The Chancellor's pre Budget report has confirmed that the inheritance tax nil rate band for individuals has been frozen next year at the current level of £325,000 per individual. This has probably not come as a surprise to many of our private clients. The Chancellor has also closed loop holes used by UK tax payers to circumvent the 20% tax levy on transfers from individuals to trusts that exceed the nil rate band. The favourable treatment of "flexible" reversionary trusts has also been scrapped. The other big news for private clients is the new reporting requirements which apply to UK residents opening accounts in certain off shore jurisdictions such as the Channel Islands. There are hefty penalties of up to 200% of unpaid tax for those that fail to comply. If you would like any further information please contact Robin Cooper on 01892 502313 or by email to rcooper@bussmurton.co.uk.