Upcoming budget - how soon can measures take effect?

Albermarle

[Deleted User] said:

I assume things like ISA allowances can't change till the new tax year? For those of us who haven't quite maxed out their allowance yet.

I would have thought so, plus you are naturally limited to £20K anyway.
In any case one of the less likely of the numerous budget predictions to happen. 

dunstonh

[Deleted User] said:

I assume things like ISA allowances can't change till the new tax year? For those of us who haven't quite maxed out their allowance yet.

Unlikely but the Government could change them that day if the wanted.   The change required in systems along with transactions in process would make it a technical nightmare (regular payments are requested often 10-15 days in advance of the actual direct debit date.    Some ISA providers pre-fund contributions.  Some wait until received and cleared.   Same on bed & ISA transactions.    

Given the complexity of such a change, a couple of hours notice wouldn't work.   However, a change from the tax year is much easier.

coyrls

Filling up your petrol tank before budget day is probably one of the few anticipatory measures that makes some sense.

TheBanker

coyrls said:

Filling up your petrol tank before budget day is probably one of the few anticipatory measures that makes some sense.

And buy the Christmas booze, and ciggies if you smoke... 

Reminds me of budget days of old, when I think the budget used to be broadcast on BBC1. I remember my dad always filled the car, bought his beer, spirits and fags and then watched the budget to work out if he'd 'won". 

I seem to recall that any changes to fuel duty took effect from 6pm on budget day so sometimes there would be queues at petrol stations.

wmb194

coyrls said:

Filling up your petrol tank before budget day is probably one of the few anticipatory measures that makes some sense.

If you’ re planning on taking capital gains anyway taking them before the budget isn’t a terrible idea either.

Arthurian

Maybe sending a gift of money to your children, before the budget, too?  Although surely, surely they wouldn't change anything to do with inheritance tax taking effect at 6pm the same day?

wmb194

Arthurian said:

Maybe sending a gift of money to your children, before the budget, too?  Although surely, surely they wouldn't change anything to do with inheritance tax taking effect at 6pm the same day?

That would probably be next day. In 2010 when they changed the CGT rate mid-year it was next day. 

Aretnap

Arthurian said:

Maybe sending a gift of money to your children, before the budget, too?  Although surely, surely they wouldn't change anything to do with inheritance tax taking effect at 6pm the same day?

If you're thinking of a change to the 7 year rule, the natural thing to do would be to make it dependent on the date of death rather than the date of the gift. So if you die before date X gifts made in the preceding 7 years would be taxable, if you die after date X it would be gifts in the preceding 10 years or whatever. 

In other words, if you are really serious about avoiding tax, make sure you die before budget day. As an added bonus, you won't have too read any more wild speculation about what might be in the budget.