Emergency Budget: Private client

SPEED READ As expected, CGT dominated The Budget. The rate rises to 28% for many but the generous reliefs for entrepreneurs did not materialise. The lifetime limit for Entrepreneurs’ relief rises to £5 million, but the limitations on the relief remain. These changes came into effect from 23 June 2010. Other reliefs remain as does the annual exemption at £10,100. Planning will focus on use of partnerships, correct allocation of reliefs and possibly emigration. Other changes were few – inheritance tax and the “non-dom” rules were not impacted. 880,000 people were taken out of income tax altogether, but many will now become higher rate taxpayers.