What could tax decisions in the budget mean for you?
Michael Lansdell explains the implications of the capital gains tax annual exemption and the inheritance tax nil rate band being frozen in this year’s budget.
In his budget, the chancellor announced that the capital gains tax (CGT) annual exempt amount (AEA) will remain frozen at its current rate, up to and including the 2025/26 tax year. This decision was taken hand in hand with the freezing of the personal allowance and basic rate income tax bands.
AEA is the annual amount below which capital gains realised by an individual in a particular tax year are not subject to CGT. The AEA for individuals in the 2020/21 tax year is £12,300 and will remain so until April 5, 2026.
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