Pre-budget report 2006: No surprises for personal finance

Published at 11:25 AM on 06 December 2006

Clive Mackintosh, tax partner and head of private clients, PricewaterhouseCoopers LLP, said: “The Pre-Budget Report (PBR) is traditionally about generating and consulting on new ideas and proposals. From a personal finance point of view this year’s PBR was relatively quiet, with the Chancellor choosing not to propose any major overhauls. “Individual taxpayers will have been listening carefully to the environmental tax changes, as moves to raise more tax revenues in this area impact everyone.” ISAs “While the announcement has already been made that ISAs will continue after 2010, the Chancellor re-announced this in the PBR. However, more details on the proposed simplification of the regime and the integration of Personal Equity Plans (PEPs) into ISAs would have been welcome. CG and taper relief “It was a shame that the Chancellor did not take the Pre-Budget Report as an opportunity to straighten out some of the anomalies still associated with capital gains and taper relief. These anomalies go well beyond the significant difference between business and non-business asset tapers to include the calculations of business periods, which straddle times when the rules have changed. Residence “In light of the recent Gaines-Cooper case, there is a need for a statement from HM Revenue & Customs (HMRC) on how its guidelines – known as IR20 – are to be used in future. Everyday situations are affected by the doubt cast on our residence rules by this case and the overriding of the guidance that has been adhered to in the past. It had been hoped that the Chancellor would clarify the position today. Overseas houses “For some time, there have been calls for abolition of the threat that hangs over many people who own their own properties abroad via a local company – a very common situation that gives rise to a technical benefit-in-kind tax charge. Many will be disappointed that the Chancellor has still not provided certainty on the rules for such overseas houses.Trusts “Given the abundance of changes to Inheritance Tax (IHT) and trusts in the 2006 Budget, it was disappointing that the Chancellor did not follow this up in the Pre-Budget Report by clearing up some of the anomalies associated with them.” ENDS

Notes to Editors:

1.PricewaterhouseCoopers experts are available on Pre-Budget Report day for comment and analysis. Please call the Pre-Budget hotline on 020 7213 4311 or visit www.ukmediacentre.pwc.com 


For more information contact:

Frances Brown
Media Relations Executive, Tax, PricewaterhouseCoopers LLP 
Tel:020 7213 7258 
Mobile:07841 494 508 
 

Clive Mackintosh
Partner, PricewaterhouseCoopers LLP 
Tel:020 7804 5614 

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