Now the dust has settled following publication of the 30th October 2024 budget, Kevin Prosser KC and David Yates KC give their thoughts on certain aspects of the budget, looking at important changes to CGT and IHT, and against the backdrop of the GAAR (general anti-abuse rule).

Kevin and David's discussion covers:

Capital Gains Tax (from 2.17 minutes)

• new anti-forestalling provisions
• unconditional contract planning and the use of overseas entities
• investors' relief in respect of gains on sale of shares in listed companies
• pilot trusts
• the consequences of the transfer of assets when limited liability partnerships become body corporates (s59A and s59AA TCGA)
• employee ownership trusts (ss236H - P of TCGA 1992)

Inheritance Tax (from 25.21 minutes)

• employee benefit trusts
• Post 6 April 2026 tax planning (partnerships, reorganising share capital) now APR and BPR has been reduced
• actual domicile/domicile of choice

The implications of the budget on "non doms" will be discussed by James Rivett KC and Emma Chamberlain in a separate podcast.

Cases and legislation referred to

WT Ramsay Ltd v IRC [1982] 2 AC 300

Rysaffe v IRC [2003] EWCA Civ 356

Barker v Baxendale Walker [2017] EWCA Civ 2056

Finance Act 2020

Finance Bill 2024

Inheritance Tax Act 1984 (in particular ss 13, 28, 86)

Taxation of Chargeable Gains Act 1992 (in particular ss17,18, 28, 59A, 59AA, 236H - P)