Funds held in a pension are not included in valuing your estate. If IHT applies to your estate, your pension funds aren’t included and therefore won’t be subject to a 40% tax.However, as with many aspects of financial planning, it isn’t always this straightforward.
From an automotive perspective the question is always whether the Chancellor’s announcements will either improve consumer confidence and spending power or have a positive effect on motor retailers directly.
There were mixed views for property owners in the Spring Budget with a tax cut for those selling residential property, while those operating furnished holiday lets and property investors are facing increases in tax.
The Chancellor indicated that the two-tier tax system for employees, with both National Insurance Contributions (NIC) and income taxes affecting the take home pay for 28 million workers across the country, was not something he felt was fair, as other forms of income are taxed to just income tax.
Jeremy Hunt’s Spring Budget didn’t deliver a huge amount of technical content. Unsurprisingly, given an impending election, there was a lot of political bluster and not a great deal of substance, particularly for businesses.
From a financial planning perspective this was a budget low on headlines. Having got through the pre-election banter it required a dive into the detail to understand how this might impact our clients.
The Chancellor continued his support for the arts by permanently setting the rates at which losses can be surrendered in respect of expenditure qualifying for Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibitions Tax Relief at 40% for non-touring productions and 45% for touring productions and all orchestra productions.