Capital Gains & Inheritance Tax - Recent & Planned Changes

Overview of Key Changes

• Highlight major revisions introduced by recent Finance Acts and the Autumn Budget 2024
  • Overview of tax policy trends: capital gains, inheritance tax, and domicile reforms
  • Significant thresholds, allowances, and reliefs adjusted.
  • New anti-avoidance measures and reporting obligations
• Discussion on the practical scope and relevance of these changes for business owners, individuals, and legal practitioners
  • Comparison of old vs new regimes
  • Analysis of high-impact areas for SMEs, investors, landlords, and HNW individuals
• Practical Exercise Case Study: Analyse a client profile and highlight areas of exposure or benefit under the new legislation.

Business Asset Disposal Relief (BADR)

• Conditions that must be met to qualify for BADR.
  • Trading status, shareholding, and employee/director involvement requirements
  • Qualifying business types and assets.
• How to effectively make a claim and key deadlines
  • Time limits for claims
• Maximum relief amounts and how they apply in real-life cases.
  • £1 million lifetime limit – practical implications
  • Example calculations: full relief vs partial relief outcomes
• Practice Point
  • Mini Exercise: Determine eligibility for BADR based on a given business scenario.
  • Discussion: Evidence required to prove “personal company” status

Proposed Abolition of the Furnished Holiday Let Tax Regime

• Government reasoning behind proposed changes
  • Perceived inequality and tax avoidance concerns
  • Housing supply and market distortion arguments
• Potential financial and strategic impact on current property owners and developers
  • Loss of capital allowances and business rate exemptions
  • Changes to CGT reliefs and mortgage interest deductions
• Practice Point:
  • Case Study: Advising a client with a portfolio of FHLs on transition options (e.g., long-term letting, disposal strategies)
  • Group Discussion: Restructuring options – trust, company, or personal ownership.

Investors’ Relief

• Review of qualifying criteria for investors
  • Minimum holding period.
  • Type of shares and unlisted trading company criteria
• Updates following the Autumn Budget 2024
  • Restriction or abolition of the relief (if applicable)
  • Transitional relief considerations
• Practice Point:
  • Scenario Exercise: Apply relief to a timeline of share acquisition and sale.
  • Discussion: Weighing Benefits of Investors’ Relief vs EIS

Residence Relief

• Definitions relevant to principal private residence claims
  • Periods of occupation deemed occupation, and absence rules.
  • Impact of job-related accommodation
• Recent legislative changes affecting disposals of main residences.
  • Reduction in final exemption period
  • Lettings relief limitations
• Practice Point:
  • Exercise: Client timeline of property ownership—calculate allowable exemption
  • Discussion: Dealing with split occupancy and second homes

Abolition of Non-Dom Status (Effective 6 April 2025)

• Transition from the remittance basis to the proposed new residence-based regime
  • Four-year exemption period for new residents
  • Treatment of foreign income and gains
• Introduction of the Temporary Repatriation Facility (TRF)
  • One-time opportunity to remit foreign income at a reduced tax rate
  • Eligible periods and funds
• Implications for existing Income Tax and Capital Gains Tax structures
  • Impact on offshore trusts and corporate wrappers
  • Planning considerations for income streaming and remittances
• Practice Point:
  • Case Study: Transition planning for a long-term Non-Dom client with significant offshore income
  • Discussion: How legal professionals can support clients with foreign asset declarations in litigation

Inheritance Tax (IHT) Updates

• Changes to the Residence Nil-Rate Band (RNRB) and conditions for eligibility
  • Tapering thresholds and downsizing provisions
  • Impact of trust-held property
• Overview and strategic application of Business Property Relief (BPR) and Agricultural Property Relief (APR)
  • Qualifying assets and business activity tests
  • Pitfalls in claiming relief – e.g., non-trading assets, development land.
• Introduction of new payment options and instalment provisions effective from 6 April 2026
  • Enhanced spreading of IHT liability

• Practice Point:
  • Scenario Planning: Construct an IHT-efficient estate plan for a farming family.
  • Exercise: Audit a client's will and assets for missed relief opportunities

Conclusion and Q&A

• Summary of key legislative changes and practical takeaways
  • Recap of client types most affected.
  • Top compliance risks and planning opportunities
• Open Q&A to clarify technical points and real-world application
  • Interactive discussion with participant-submitted questions

• This Capital Gains Tax (CGT) and Inheritance Tax (IHT) course provides a timely update on essential CGT reliefs—particularly Business Asset Disposal Relief—and the forthcoming changes to Agricultural Property Relief and Business Property Relief set for April 2026.
• Delegates will also gain critical insights into the potential planning challenges and pitfalls arising from the abolition of non-dom status, ensuring they are equipped to advise clients and structure transactions effectively under the latest tax regulations.

• By blending practical number-based examples, cutting-edge legislative updates, and expert guidance on common tax pitfalls, this course stands out as an in-depth, actionable resource for anyone seeking to master the complexities of recent changes in Capital Gains Tax, Inheritance Tax, and Non -Dom.

• Legal and Estate Planning Professionals: Solicitors, estate planners, and wealth managers aiming to stay informed on up-to-date capital gains and inheritance tax regulations, as well as the abolition of non-dom status, to better advise their clients.
• Accountants, Tax Advisors, and Financial Professionals: Practitioners who handle client or organisational tax matters, seeking a thorough grasp of the latest legislation and practical techniques for optimal tax planning.
• Business Owners and Directors: Individuals responsible for strategic decisions in SMEs or large corporations, who need to understand the impact of capital gains tax, inheritance tax, and non-dom reforms on their business transactions and succession plans.

• This course provides a clear, practical overview of Capital Gains Tax (CGT), Inheritance Tax (IHT), and recent changes on Non – Dom and enable both businesses and individuals to identify potential tax liabilities and minimise them.
• By examining up-to-date legislative changes and practical guidance, participants develop a robust understanding of when and how Capital Gains Tax (CGT), Inheritance Tax (IHT), and the abolition of Non-dom status—introduced under recent reforms—will apply.
• How to structure transactions efficiently, and what reliefs or exemptions might be available. This ensures decision-makers are equipped with the tools to plan ahead, reduce errors, and avoid unnecessary tax exposure.
• Participants also benefit from real-world examples and case studies.