PKF has said that the chancellor's pre-Budget report involved a 'clever' sleight of hand on IHT, while welcoming the simplifications to the CGT regime.
'The vote-winning potential of the Tories' election-busting IHT proposal certainly stirred up Darling's creative juices,' said Peter Pennycard, tax partner at PKF. 'By doubling the inheritance tax threshold for married couples and civil partnerships to £600,000 immediately and to £700,000 by 2010, he has not only stolen the Tories' thunder but will ease the tax burden for millions of hard-working families.'
'The abolition of Capital Gains Tax taper relief and introduction of a flat rate of 18% was a major surprise, which reversed a major relief first introduced by Gordon Brown in 1998', he added.
'On the whole the small business community will welcome this move for its simplicity although in some instances it will mean paying more tax as the minimum rate of CGT currently payable is 10%.'
Pennycard also admitted that the non-dom crackdown could be seen as stealing the Tories' clothes.
'The chancellor's announcement that non-domiciles will have to pay either a flat fee of £30,000 or UK tax on their unremitted income and gains once they have been in the country for seven years is politically astute, albeit he could be accused of stealing the Tory policies.'
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