The Spring Budget was delivered by the Chancellor on 15^th March 2023. The key areas to note in relation to Private Client are:

Trusts and Estates:

• From the 6^th April 2024 it is proposed that trusts and estates with income up to £500 will not pay tax on this as it arises.
• This abolishes the basic rate and dividend ordinary rate from the first £1000 of discretionary trust income. The current rates for the trust income up to £1,000 of a discretionary trust is 8.75% for dividends and 20% for other income.
• Beneficiaries of UK estates will not have to pay tax on income they receive if it is less than £500.

Pensions:

• From 6^th April 2023, the Annual Allowance will increase from £40,000 to £60,000.
• From 6^th April 2023, the Lifetime Allowance will be removed for 2023–24 and will be abolished from April 2024. The current level of the Life Time Allowance is £1,073,100.

The government also announced that it will consult on the taxation of ecosystem service markets and the potential expansion of agricultural property relief from inheritance tax to cover certain types of environmental land management.

For more information on the Spring Budget 2023, please see the Government Website.

For further advice and assistance please contact our Private Client Team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk