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CGT Reform: What could it mean for IHT and business relief?

Following the first article, in this second part of the series on the recent capital gains tax (CGT) reform recommendations, Les Cameron, Head of Technical at Prudential, assesses what might be the impact on inheritance tax and business relief.

This time, Les discusses what the review has suggested for inheritance tax (IHT) and business reliefs.

  • Interaction between CGT and IHT: In its first report, the Office of Tax Simplification (OTS) has recommended amending the treatment of gains on death. Where an IHT relief or exemption applies, the OTS recommends that the CGT uplift on death should not apply.


  • Potential changes to business relief: The OTS has said this relief should instead be targeted at those retiring. This could involve introducing a qualifying holding period of 10 years (currently, business owners only need to have owned a business for two years to qualify for relief). An age limit could also be introduced to target retirees.

It remains to be seen which, if any, of the OTS recommendations are implemented and who will be affected.

For more information, follow the link below where you will find the full article.

CGT Reform: IHT and business relief,

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