Proposed tax reforms

Graeme Robb of James Hay’s Technical Unit comments on the proposed tax breaks announced by the Conservative Party: “The tax system in some respects already rewards marriage, and more recently civil partnerships. For example there is no capital gains tax or Inheritance Tax between spouses or civil partners. Clearly these tax reliefs do not benefit less privileged members of society, and perhaps therefore these modest proposed tax breaks will go some small way towards redressing the balance.

“It would also be interesting if the Conservatives were bold enough to expand on this idea of transferable tax allowances to allow spouses and civil partners the opportunity to transfer unused Inheritance Tax nil rate band exemptions on first death. This idea has already been put forward in the House of Lords and we would be intrigued to see further developments.”