Summary of the taxation provisions

In his pre-election Budget, the Chancellor Gordon Brown announced a range of new measures and confirmed a number of changes announced in recent months. As usual, there were many more announcements in the various Budget papers and press releases than in the speech itself.

The individual savings account (ISA) limits will be extended to April 2010. The capital gains tax annual exemption for 2005/06 will be £8,500. The inheritance tax nil rate band will be £275,000 for 2005/06 and will rise to £285,000 in 2006/07 and to £300,000 in 2007/08. From 17 March 2005, the zero rate threshold for stamp duty land tax will increase to £120,000 for residential property transactions and the relief for commercial property in disadvantaged areas will cease. Various measures were announced to tackle tax avoidance, with particular focus on stamp duty land tax and assets owned by non-UK domiciled people living here.

The summary has been prepared very rapidly and may contain errors for which we cannot be responsible. The proposals are in any event subject to amendment before the Finance Act is passed. Advice should be taken before any action.